Washington, D.C. (February 6, 2013) -
Charter Communications' stock rose more than six percent
yesterday on rumors that the cable operator could soon be
purchased by Time Warner Cable or Cox, reports Deadline.com.
The web site reports that Charter has just frozen all budgets
and put a freeze on hiring at its headquarters in Stamford,
In addition, Charter announced that it has hired two Wall Street
veterans in the executive ranks, another possible sign that the
company is preparing to participate in a deal that would require
people with acquisitions and mergers experience.
Deadline.com also reports that several high-profile investors,
including George Soras, recently bought or increased their
stakes in Charter.
The idea that Charter could be sold to Time Warner Cable in 2013
is not a new one, at least on these pages. On December 30, 2012,
in my annual predictions for 2013,
am now predicting that Time Warner Cable will buy Charter
The cable business has had difficulty maintaining video
subscription numbers thanks to increasing competition from telco
and satellite TV services and video streamers such as Netflix.
I don't foresee this changing anytime soon, and consequently, I
expect to see some consolidation in the category over the next
Charter is a likely candidate to be bought. The company has
invested heavily in improving its infrastructure and service
since coming out of bankruptcy three years ago. However, it has
lost more than 20 percent of its subscribers over the last 10
years and the struggle to improve on that record will be even
Time Warner Cable seems to be in acquisition mode and certainly
has the resources to pull off the deal, which is why I am
predicting it will do it. But it wouldn't surprise me if Comcast
slipped in instead."