Time Warner Cable (TWC) has reportedly contacted Cablevision (CVC) and Cox Cable about buying...

Time Warner Cable (TWC) has reportedly contacted Cablevision (CVC) and Cox Cable about buying them as TWC looks to grow through acquisitions rather than be bought by John Malone's Liberty Media (LMCA), which owns 27% of Charter Communications (CHTR). While talks with Cox and Cablevision haven't led too far, the latter's founder and Chairman, 86-year Chuck Dolan, could be ready to sell. As for Liberty, TWC believes a tie-up for Charter would add too much debt and it is skeptical about prospective synergies.

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Comments (4)
  • jpomerance
    , contributor
    Comments (36) | Send Message
    Considering the ~20% run up on the "buy the rumor" news and this being the second time TWC management has told Malone they are not interested and he telling sources he is not interested in a hostile takeover, the recent run up does not appear justified. Considering the debt on TWC balance sheet and that any further buyout by Liberty would need to involve even more leverage on TWC this does not seem feasible. With subscriber loss, competition from Google fiber, increased content costs and rising interest rates I would think volatility would be the word in this stock.
    30 Jun 2013, 12:53 PM Reply Like
  • Mktneutralhedger
    , contributor
    Comments (1415) | Send Message
    Agree. A put on TWC seems like an interesting trade.
    30 Jun 2013, 03:53 PM Reply Like
  • aaabondpro
    , contributor
    Comments (10) | Send Message
    On Friday I sold my 1,100 shares of CVC at $16.85 for a modest profit of about $2,400 after a year or so in order to get out in the black and avoid further volatility. This tells me that CVC, now free of the weight of my shares, will soar like a hot-air balloon, and what better catalyst for that is there than a buy-out offer or even a rumor of one. Be advised, fellow investors!
    30 Jun 2013, 06:41 PM Reply Like
  • aaabondpro
    , contributor
    Comments (10) | Send Message
    7/1/13 CVC closed at $18.44, UP a dollar sixty-two per share !
    Don't say I didn't tell you.
    1 Jul 2013, 06:18 PM Reply Like
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