Seeking Alpha

Charter offers to buy Time Warner Cable for $132.50/share

  • Following weeks of reports and speculation, Charter (CHTR) has offered to buy Time Warner Cable (TWC) for $132.50/share, or $61B after factoring debt. Charter is offering $83/share in cash and $49.50/share in stock.
  • Charter has sent a letter to TWC CEO Rob Marcus outlining its offer.
  • The offer price, which might just amount to an opening gambit, represents only a $0.10/share premium to TWC's Monday close. But shares have already rallied on expectations of a deal.
  • Update (4:30PM): Charter is now up 1.7% AH. Time Warner Cable is up 0.8%.
Comments (6)
  • Mike Maher
    , contributor
    Comments (2482) | Send Message
    The real question is if a bidding war breaks out. This should kick off another round of consolidation.
    13 Jan, 04:35 PM Reply Like
  • buffett222
    , contributor
    Comments (776) | Send Message
    Another lowball bid by Malone. $TWC and $SIRI, just say no.
    13 Jan, 05:14 PM Reply Like
  • JillKennedy
    , contributor
    Comments (75) | Send Message
    This is just the beginning of a very nasty year of media consolidation. This year is going to be a bloodbath....
    13 Jan, 04:38 PM Reply Like
  • Captain Pike
    , contributor
    Comments (508) | Send Message
    Should be stopped by the Gov.
    13 Jan, 05:06 PM Reply Like
  • Nettligent
    , contributor
    Comments (1345) | Send Message
    On March 27, 2009, Charter Communications, Inc. (“Charter”) and numerous subsidiaries filed for chapter 11 bankruptcy protection. Charter could not sustain its debt load of $22 billion, which consisted of various tranches of bank and bond debt.
    The bankruptcy was pre-arranged; Charter had already negotiated the key terms of a restructuring with certain major constituents.These terms included canceling and equitizing certain bond debt and raising billions of dollars of new capital.
    A debt reduction from $22 billion to $13 billion, and the freeing up of $800 million per year in previous interest expenses. CHTR stock is hot with 52-week range: $76 - 144/share.
    Charter offers to buy Time Warner Cable for $132.50/share.
    I personally don't believe in miracle but miracle does happen: Charter Communication itself is the miracle of miracles
    13 Jan, 10:10 PM Reply Like
  • Kyle Spencer
    , contributor
    Comments (998) | Send Message
    This is going to be one ugly baby. A schoolyard bully, sure, but. Ugh.
    14 Jan, 12:42 AM Reply Like
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