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Time Warner Cable Inc. (TWC)

  • Yesterday, 2:31 PM
    • As states dig in to the details of Charter Communications' (CHTR -0.4%) $56.7B plan to buy Time Warner Cable (TWC -0.4%), a deal that was delayed into Q1 could slip toward June -- maybe largely due to California.
    • State regulators are taking a bigger role in this merger, says RBC Capital's Jonathan Atkin, and a California administrative law judge has a decision set for May with a PUC vote set for June 16.
    • "This delay of approximately two months vs. the original timeline reflects the (law judge) acceptance of public interest group arguments to introduce evidentiary hearings," Atkin writes. Dish Network has gone on the record with its opposition to the deal, saying it would establish a "suffocating duopoly."
    • "We continue to work with the California PUC and their staff and remain confident we will obtain all of the approvals necessary for closing in due course," Charter told IBD in response.
    | Yesterday, 2:31 PM | Comment!
  • Mon, Nov. 23, 2:47 PM
    • Goldman Sachs' Hedge Fund VIP list of the 50 most-heavily-owned stocks have trailed the S&P 500 by about 500 basis points (down 2% vs. the S&P's 3% gain) year-to-date, including 720 basis points of underperformance since the start of October (down about 8% vs. down about 1%).
    • Call it the Valeant effect: Health-care stocks have accounted for about 70% of the year-to-date 2% decline.
    • Based on the most recent filing, hedge funds are bailing on some of their poorer performers, including Valeant (NYSE:VRX), HCA Holdings (NYSE:HCA), Endo (NASDAQ:ENDP), Ally Financial (NYSE:ALLY), and NorthStar Realty (NYSE:NRF), and have instead placed bets on Baidu (NASDAQ:BIDU), Mylan (NASDAQ:MYL), MGM Resorts (NYSE:MGM), and GE.
    • After the shakeup, the top five hedge fund hotels: Allergan (NYSE:AGN), Facebook (NASDAQ:FB), Alphabet (GOOG, GOOGL), Time Warner Cable (NYSE:TWC), and Amazon (NASDAQ:AMZN).
    | Mon, Nov. 23, 2:47 PM | 10 Comments
  • Thu, Nov. 19, 5:32 PM
    • Stock exchanges are saying they're canceling erroneous trades in Time Warner Cable (TWC -0.4%) from today.
    • Shares closed down slightly at $184 on higher-than-average volume. The exchanges said they're canceling trades in the stock at or below $178.40 (3% lower) that took place between 3:51 p.m. and 3:52 p.m. ET.
    | Thu, Nov. 19, 5:32 PM | 3 Comments
  • Fri, Nov. 13, 10:01 AM
    • In a new reply filed with the FCC as its comment period ended, Dish Network (DISH -0.8%) says the merger between Charter (CHTR -1.2%) and Time Warner Cable (TWC -0.1%) isn't in the public interest, targeting the key attribute the agency reviews in potential mergers.
    • "The proposed merger is harmful for consumers, competition and innovation, and should be denied," the company said.
    • Dish Network had filed a petition with the agency in October in opposition to the merger. Its new reply comes in response to filings from Charter, TWC and Bright House Networks (also set to be acquired by Charter in the deal).
    • "The merger will create a dominant duopoly," Dish said in its most recent statement.
    • Speaking at Liberty Broadband's investor meeting yesterday, Charter chief Tom Rutledge suggested the deal's in its endgame.
    • "Everyone has had their say," Rutledge said. "The shot clock has stayed ticking as a result of our responsiveness so far. And there are very few local franchised authorities left for us to get clearance on. Our financing is done. We're sitting here, ready to close."
    • Previously: AT&T: We're not opposed to Charter-TWC, but probe carefully (Oct. 14 2015)
    • Previously: Dish Network files FCC petition to deny Charter-TWC merger (Oct. 13 2015)
    | Fri, Nov. 13, 10:01 AM | 1 Comment
  • Wed, Nov. 11, 6:38 PM
    • Time Warner Cable (NYSE:TWC) has begun its trial of cable-less cable in New York City, where subscribers can replace their set-top boxes with Roku players and receive their TWC service over the Net.
    • It's not an over-the-top service, TWC hastens to add, but just its cable service provided via the Internet -- with no need for a coax cable or descrambling device (and, notably, without that box's rental fees). Most content will only be available via the subscriber's home network.
    • Qualified users -- at minimum, they need to be signed up for its Extreme speed service to handle the bit load -- can sign up and receive a Roku 3 player for free (for now) along with setup directions.
    • Aside from the Internet service costs, the TV service will cost $10/month for a bare-bones plan with just over 20 channels, while a $50/month plan adds premium channels including Disney, ESPN, MTV, TBS, Showtime, Starz and more.
    • Meanwhile, Roku is debuting a "new" low-cost streaming device, the Roku SE, which it plans to sell for $50 -- but for just $25 on Black Friday. It's similar to other Roku devices with the same access to its various channel services, but without an Ethernet port -- so it needs to get Internet service via Wi-Fi.
    • TWC blog
    | Wed, Nov. 11, 6:38 PM | Comment!
  • Mon, Nov. 9, 8:05 PM
    • With the review of Charter Communications' (NASDAQ:CHTR) buyout of Time Warner Cable (NYSE:TWC) proceeding apace at the FCC, the agency is sending requests tied to cable mogul John Malone's holdings not only in Charter but in content companies like Discovery (NASDAQ:DISCA) and Starz (NASDAQ:STRZA), which supply Charter rivals.
    • The agency has sent letters to the companies that list Malone as their chairman -- Liberty Media (NASDAQ:LMCA), Liberty Interactive (NASDAQ:QVCA) and Liberty Broadband (NASDAQ:LBRDA), which holds 26% of Charter -- and asked about Malone's influence over those entities as well as the content creators and DirecTV.
    • It's a "pretty meaningful request," says BTIG's Rich Greenfield, while Craig Moffett points at the Comcast deal for NBCUniversal in saying that Malone's tangled ownership is "probably not a big issue."
    • Malone has a 46.6% voting interest in Liberty Broadband, which would be entitled to vote no more than 25.01% of shares in the new combination, Charter has said. His interests in Discovery and Starz are "minority interests" where he wouldn't control day-to-day decisions.
    • The American Cable Association (representing smaller providers) argues that Malone's interests aren't insubstantial and that consumers can expect higher rates unless the FCC imposes conditions on the deal.
    • Previously: BTIG: Are TWC, Charter too strong separately to sell merger case? (Nov. 02 2015)
    • Previously: Charter call: Talking wireless ambitions, slamming password sharing (Oct. 29 2015)
    | Mon, Nov. 9, 8:05 PM | 6 Comments
  • Mon, Nov. 2, 3:50 PM
    • Merger partners Time Warner Cable (TWC -1.2%) and Charter Communications (CHTR -2.1%) reported solid quarters last week (TWC, CHTR) -- so solid, in fact, that one analyst raised some doubts on the deal.
    • The merger still has a better than 50% chance at approval, says BTIG Research's Rich Greenfield, but he says the more his team thinks about management commentary from the quarter, "the more we wonder whether regulators will buy into the supposed benefits of a merger that essentially creates another Comcast.”
    • When Charter reported on Thursday, shares rose 5%; TWC shares were up 3.9%.
    • Together, the company's conference calls and notices showed strength in new product, new subscribers and higher speeds, which makes Greenfield wonder whether BTIG was "too positive" on the merger's chances for regulatory approval.
    • Previously: Charter call: Talking wireless ambitions, slamming password sharing (Oct. 29 2015)
    • Previously: Charter up 1.6% on Q3 beat, subscriber growth (Oct. 29 2015)
    • Previously: Time Warner Cable +2% on record subscriber gains (Oct. 29 2015)
    | Mon, Nov. 2, 3:50 PM | Comment!
  • Thu, Oct. 29, 9:38 PM
    • In Charter's (NASDAQ:CHTR) earnings call today, CEO Tom Rutledge weighed in on bundles, package pricing and wireless ambitions, and had a word or two about millennials' password-sharing and its effect on the bottom line.
    • With regard to the traditional bundle: An economically pressured population that's "poor, essentially" is affecting what people are willing to pay for cable, Rutledge says. But he downplayed the distinctions around whether Charter would offer streaming service, noting 1.4M customers have downloaded its apps: "We continue to expand the platforms that the app system is available [on], but it's cable television."
    • On usage-based pricing: "We don't do it. We don't do it because we want to sell more services, and that's our business model."
    • Charter's gotten approval from most states for the Bright House/Time Warner Cable (NYSE:TWC) deal, as well as shareholders, and Rutledge says it's gotten nearly all the acquisition financing, so attention turns to the FCC. The agency will close its comment cycle for the deal in mid-November, and Rutledge says "realistically" they're looking at a Q1 closing.
    • As for whether Charter will take place in the spring's wireless spectrum auction: "We're studying the auction. We're interested in it. And I talked extensively in the past about the opportunities in being a mobile business, and there are a variety of ways to go into it." Rutledge said Charter wasn't teaming with Comcast on the auction -- "at the moment."
    • Rutledge dinged networks that manage streaming and authenticated "TV Everywhere" services -- ineffectively, in his view, by mismanaging password sharing: "They haven't been in that business before, and they haven't really thought through what they're doing. ... And they've created a problem where they devalued their own product by their inability to secure it." That's going on in the "college market," he said, and reducing demand for video.
    • Previously: Charter up 1.6% on Q3 beat, subscriber growth (Oct. 29 2015)
    • Previously: Charter Communications reports Q3 results (Oct. 29 2015)
    | Thu, Oct. 29, 9:38 PM | Comment!
  • Thu, Oct. 29, 10:17 AM
    • Time Warner Cable (NYSE:TWC) is trading up 2% after a Q3 report where it posted record subscriber gains and beat bottom-line expectations solidly.
    • Revenues grew 3.6% though operating income and EPS dipped about 13% as the company posted higher depreciation expense from its TWC Maxx initiative.
    • Revenue breakout: In residential ($4.735B), Video revenues of $2.453B (down 1.8%); High-speed data, $1.772B (up 9.4%); Voice, $483M (up 1.5%). In business services ($836M), Video revenues of $97M (up 4.3%); High-speed data, $412M (up 20.1%); Voice, $153M (up 15.9%); Wholesale transport, $122M (up 16.2%).
    • In residential results, video subscribers declined again, but at -7,000 subscribers it was the company's best Q3 in that area since 2006. Overall, residential customer relationships were up a net 147K. Residential high-speed data net adds of 232K; residential voice net adds of 237K; residential triple-play net adds of 218K.
    • Press Release
    | Thu, Oct. 29, 10:17 AM | Comment!
  • Thu, Oct. 29, 6:03 AM
    • Time Warner Cable (NYSE:TWC): Q3 EPS of $1.62 beats by $0.05.
    • Revenue of $5.92B (+3.7% Y/Y) misses by $40M.
    • Press Release
    | Thu, Oct. 29, 6:03 AM | Comment!
  • Wed, Oct. 28, 5:30 PM
  • Mon, Oct. 26, 9:18 PM
    • Amid some turmoil in the division, Time Warner Cable's (NYSE:TWC) Sports President David Rone is leaving the company after more than four years at that helm.
    • Rone was critical to TWC's push into sports, helping to launch TWC's SportsNet as well as Spanish-language Time Warner Cable Deportes, but both channels have slipped along with the fortunes of the Los Angeles Lakers.
    • Meanwhile, L.A. Dodgers co-venture SportsNet LA experienced trouble getting picked up by other providers who complained about heavy fees. The venture loses more than $100M a year for the company. After a pregnant pause, Charter agreed to pick up the channel -- after it set a deal to purchase TWC.
    • The move clears all obstacles to what could be a wholesale revamp if the company is successfully acquired by Charter (NASDAQ:CHTR), which could install its own team or take TWC Sports in a different direction.
    • Previously: Charter to bring Dodgers channel to southern California customers (Jun. 04 2015)
    • Previously: TWC's Dodgers station still off the air for most (Apr. 06 2015)
    | Mon, Oct. 26, 9:18 PM | Comment!
  • Mon, Oct. 26, 12:24 PM
    • Saying he's "concerned," New York's attorney general is asking three Internet providers to prove that customers are getting the access speeds they were promised, especially on the higher end.
    • Time Warner Cable (NYSE:TWC), Cablevision (NYSE:CVC) and Verizon (NYSE:VZ) have each gotten a request from AG Eric Schneiderman to provide some extensive details, on total broadband customers since 2011 and their service levels as well as customer complaints and copies of their interconnection deals.
    • "New Yorkers deserve the Internet speeds they pay for. But, it turns out, many of us may be paying for one thing, and getting another," the statement from Schneiderman's office says. The three companies each expressed confidence that they were providing speed as promised.
    • The interconnection deals may be key to the probe, as past studies have shown that service tended to suffer where providers connected with longer-haul carriers.
    | Mon, Oct. 26, 12:24 PM | 5 Comments
  • Mon, Oct. 26, 11:14 AM
    • Time Warner Cable (NYSE:TWC) this week is set to test an Internet-only TV service for its broadband subscribers, one that would skip over its set-top boxes and offer service through other hardware.
    • The service would support other hardware platforms, but participants would get a Roku 3 for free, Engadget says.
    • The test will come to customers in New York City for now. A starter package looks to come for $10 on top of broadband service fees, with a premium package featuring Showtime and Starz for $20/month.
    • TWC already has authenticated TV apps that run on various devices -- so the new offering is heavily blurring the line between signups for "standard cable" and this new service, with the key difference (aside from some pricing nuances) looking to be the presence of the company's set-top box.
    | Mon, Oct. 26, 11:14 AM | Comment!
  • Tue, Oct. 20, 11:27 PM
    • Richard Plepler, CEO of HBO (NYSE:TWX), had talked nicely in the spring about whether the launch of stand-alone service HBO Now would antagonize the network's longtime cable partners: "We see this as an expansion of the pie, not cannibalistic at all of our current business."
    • Now he's speaking a little more directly: “If you’re Brian [Roberts, CEO of Comcast (NASDAQ:CMCSA)] and you have 6M broadband subs, why would you not bundle HBO and share that revenue with us? Why would you give up that real estate and not be paid for it? I don’t understand it," Plepler said tonight in a keynote in Laguna Beach, Calif.
    • Comcast, along with to-be-merged Charter (NASDAQ:CHTR) and Time Warner Cable (NYSE:TWC), don't offer HBO Now. Cablevision (NYSE:CVC) and Verizon (NYSE:VZ) do.
    • In comments reported by Variety, Plepler went after distributors who were leaving money on the table: “Some of our partners are not as skilled at that, and I think that’s myopic on their part,” he said.
    • Previously: HBO CEO: Direct streaming a play for millennials (Mar. 31 2015)
    • Previously: HBO-Apple deal a year in the making; cable partners still a challenge (Mar. 09 2015)
    | Tue, Oct. 20, 11:27 PM | 4 Comments
  • Fri, Oct. 16, 7:02 PM
    • Customer dissatisfaction with copper-based broadband is a threat for firms like AT&T (NYSE:T) and CenturyLink (NYSE:CTL), Morgan Stanley says, noting a ripe opportunity for cable companies.
    • Though cable firms (CMCSA, CHTR, TWC, Cox) dominate broadband already, there's upside for them if they target providers of DSL, IPTV and even satellite broadcasters like DirecTV and Dish Network (NASDAQ:DISH) which resell DSL service.
    • The conclusions are based on Morgan Stanley's August-September survey of homes on broadband and TV services.
    • Cable customers got faster speeds on average -- 38 Mbps, vs. 21 Mbps for DSL -- and "U-verse and AT&T DSL had especially weak satisfaction results, and satellite pay-TV subscribers' broadband satisfaction fell materially year over year."
    • Meanwhile, FiOS (NYSE:VZ) customers were happier and saw nearly 30 Mbps service on average.
    | Fri, Oct. 16, 7:02 PM | 18 Comments
Company Description
Time Warner Cable Inc provides video, high-speed data and voice services. The Company also offers security and home management services, networking and transport services and enterprise-class, cloud-enabled hosting, managed applications and services.
Sector: Services
Industry: CATV Systems
Country: United States