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News Update 
Report: Charter Looking to Buy Time Warner Cable or Cablevision
By Swanni

Washington, D.C. (June 28, 2013) -- This is an update on our earlier stories on rumors that Time Warner Cable and Charter Communications may merge. (See earlier article below.)

Shares of Time Warner Cable and Cablevision rose quickly yesterday after Bloomberg News reported that Charter Communications is seeking to merge with one or both companies, reports Deadline.com.

Bloomberg writes that John Malone's Liberty Media, which now has a 27.3 percent interest in Charter, would likely negotiate a "friendly deal" with Time Warner Cable in the coming months. The deal presumably would bring about a merger of TWC and Charter.

But the Bloomberg article also said Charter, under Malone's guidance, is contemplating a bid for Cablevision, which would be less costly.

And there has been speculation that Malone is attempting to create a major merger that would tie together Charter, Cablevision and Time Warner Cable.

The buzz yesterday pushed shares of Time Warner Cable up 4.6 percent while Charter's stock rose 3.8 percent and Cablevision jumped 4.8 percent.



See our earlier story on the possibility of Charter and Time Warner Cable merging.
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News Update 
Time Warner Cable & Charter to Merge?
By Swanni

Washington, D.C. (June 16, 2013) -- Time Warner Cable shares on Friday rose the most in four years due to speculation that the cable operator will merge with fellow cable company,  Charter Communications, writes Bloomberg News.

CNBC reported Friday that Time Warner Cable and Charter have discussed a merger and various reports say the companies' top executives have met recently to work out possible details.

Time Warner Cable's stock jumped more than eight percent on Friday while Charter rose 5.2 percent.

(Note: Swanni predicted last December that Time Warner Cable and Charter would merge in 2013. He wrote:
"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 12-18 months.")

The reason for the merger speculation, writes Bloomberg, is the declining video sub numbers of the cable industry and the growing costs of acquiring programming from content companies. By combining forces, Time Warner Cable and Charter could streamline their companies and share the expense of acquiring content.

Wall Street analysts told Bloomberg that cable consolidation was a recurring theme at this month's Cable Show convention in Washington, D.C.


See our earlier story on the possibility of Charter and Time Warner Cable merging.
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News
Charter to Be Bought By Time Warner Cable?
By Swanni

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, Connecticut.

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, I wrote:

"I am now predicting that Time Warner Cable will buy Charter Communications.

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 12-18 months.

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 more costly.

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."



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