Comcast, Charter plot break up of Time Warner Cable

|About: Comcast Corporation (CMCSA)|By:, SA News Editor

Comcast (CMCSA) and Charter (CHTR) have reportedly discussed breaking up Time Warner Cable (TWC) in any joint bid for the company in order to overcome antitrust objections to a deal.

The transaction would resemble Comcast's and Time Warner's acquisition of Adelphia Communications in 2006, when Comcast gained 1.7M customers and Time Warner 3.3M.

A break-up of Time Warner would also make it easier for Charter to gain financing, given that it's much smaller than Time Warner.

Meanwhile, the NYT carries a profile of John Malone, whose Liberty Media (LMCA)  owns 27% of Charter. The article reports that Time Warner Cable has contacted Comcast about a possible transaction, leading to early talks.