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Time Warner Cable Inc. (TWC)

  • Tue, May 26, 9:14 AM
    | Tue, May 26, 9:14 AM | 5 Comments
  • Tue, May 26, 6:22 AM
    • Charter Communications (NASDAQ:CHTR) has agreed to buy Time Warner Cable (NYSE:TWC) for $55B, finally clinching an agreement after its early 2014 bid was rejected and Comcast abandoned its offer.
    • Charter will pay $195.71 a share - 14% above Time Warner Cable's May 22 close - with $100 in cash and the remainder in its own stock, according to a statement Tuesday.
    • Bright House Networks, a smaller cable company Charter previously agreed to buy, will also be merged into the combined entity.
    • TWC +9.1% premarket
    | Tue, May 26, 6:22 AM | 9 Comments
  • Mon, May 25, 12:43 PM
    | Mon, May 25, 12:43 PM | 2 Comments
  • Fri, May 22, 11:12 AM
    • France's Altice (OTC:ATCEY) is advancing its ambitions for a purchase of Time Warner Cable (NYSE:TWC) by talking with banks about raising debt for a bid for the highly-targeted cableco, Reuters reports.
    • The company is talking with JPMorgan Chase, Nomura, BNP Paribas, SocGen, Barclays and RBC among others.
    • If Altice were to go forward, it would try not to burden its balance sheet unnecessarily, sources tell Reuters, and financing could include a high-yield bond as well as loans.
    • It's not a light concern. With Altice's agreement to buy Suddenlink for $9.1B, not to mention the recent purchase of SFR, the company is taking on debt in a hurry. The Suddenlink deal is expected to be financed in dollar-denominated debt that would be ringfenced at Suddenlink: "It is a purely US business so it would make sense to raise the debt in dollars," says a banker.
    • Altice says total leverage, including full synergies, will be 6.1x 2014 EBITDA.
    • TWC, meanwhile, seems to be moving on the news of each day: With chatter that a bid could come in at $170/share, TWC is up 2.7%, to $170.
    • Previously: Altice enters the U.S. with Suddenlink stake (May. 20 2015)
    • Previously: Cable M&A: Altice reportedly looking at TWC as well as Suddenlink (May. 19 2015)
    • Previously: Vivendi chooses to sell SFR to Altice in €17B+ deal (Apr. 06 2014)
    | Fri, May 22, 11:12 AM | Comment!
  • Thu, May 21, 8:07 PM
    • Now up in As the Cable Turns: French billionaire and controlling shareholder of Altice (OTC:ATCEY) Patrick Drahi met in New York Wednesday with Time Warner Cable (NYSE:TWC) CEO Rob Marcus to talk about a cash-and-stock takeover, The Wall Street Journal is saying.
    • Meantime, with Charter (NASDAQ:CHTR) also in active talks about a takeover, TWC's price tag (at least informally) seems to be going up, well north of Charter's 2014 bid of $132.50/share and Comcast's bid of roughly $158.82.
    • TWC closed down 0.6% today at $165.52 and in later after-hours trading was down 5%, to $157.33.
    | Thu, May 21, 8:07 PM | 1 Comment
  • Thu, May 21, 6:04 PM
    • Giving some key hope to suitors for Time Warner Cable not named Comcast (NASDAQ:CMCSA), FCC Chairman Tom Wheeler placed individual calls to various cable execs -- including TWC's Rob Marcus and Charter's Tom Rutledge -- to say the agency's not against any and all deals just because it kiboshed Comcast's, The Wall Street Journal is reporting.
    • Wheeler reportedly wanted to clarify the FCC stance amid industry confusion about just how much consolidation it would support, and said that each potential deal would be judged on its merits.
    • Wheeler did express that he's like to see more competition from companies that traditionally haven't battled in the same geographies, and encouraged the prospect of cablecos "overbuilding" into each other's service areas, according to the WSJ.
    • With TWC looking like the key catch, its stock has risen 8.9% over the past month.
    • Consolidation prospects: TWC, CHTR, OTC:ATCEY, CVC, CTL, FTR, WIN, FRP, CBB
    | Thu, May 21, 6:04 PM | Comment!
  • Thu, May 21, 9:17 AM
    • New additions to Goldman's hedge fund hotels - 50 stocks which most frequently appear among the largest ten holdings of hedge funds: AerCap (NYSE:AER), Assured Guaranty (NYSE:AGO), Baker Hughes (NYSE:BHI), Citizens Financial (NYSE:CFG), Colony Capital (NYSE:CLNY), Dresser-Rand (NYSE:DRC), Family Dollar (NYSE:FDO), Hospira (NYSE:HSP), Netflix (NASDAQ:NFLX), NXP Semi (NASDAQ:NXPI), Pharmacyclics (NASDAQ:PCYC), Visa (NYSE:V), and Walgreens (NASDAQ:WBA).
    • Since 2001, the basket has outperformed the S&P 500 in 66% of quarters by an average of 73 basis points. YTD, however, it has underperformed by nine bps. Goldman notes the current basket overweights Consumer Discretionary (22%) and underweights Consumer Staples (2%).
    • Looking at the full list, Actavis (NYSE:ACT) leads the way, with 77 funds naming the stock as a top 10 holding. Next up is Apple (NASDAQ:AAPL) with 69, then Facebook (NASDAQ:FB) at 42. For the entire list of 50, the average is 26 funds making a stock a top 10 holding.
    • The rest in order: Valeant (NYSE:VRX), Microsoft (NASDAQ:MSFT), DirecTV (NASDAQ:DTV), Citigroup (NYSE:C), Time Warner (NYSE:TWC), Delta (NYSE:DAL), Cheneire (NYSEMKT:LNG), Yahoo (NASDAQ:YHOO), Liberty Global (NASDAQ:LBTYK), AIG, SunEdison (NYSE:SUNE), Air Products (NYSE:APD), Amazon (NASDAQ:AMZN), GM, BofA (NYSE:BAC), JPMorgan (NYSE:JPM), Macquarie Infrastructure (NYSE:MIC), American Airlines (NASDAQ:AAL), Charter Communications (NASDAQ:CHTR), Google (GOOG, GOOGL), Ally Financial (NYSE:ALLY), NorthStar Realty (NYSE:NRF), Priceline (NASDAQ:PCLN), eBay (NASDAQ:EBAY), MasterCard (NYSE:MA), Alibaba (NYSE:BABA), Micron (NASDAQ:MU), Williams (NYSE:WMB), Gilead (NASDAQ:GILD), Berkshire Hathaway (BRK.A, BRK.B), Dolar General (NYSE:DG), NorthStar Asset (NYSE:NSAM), Brookdale Senior (NYSE:BKD), DISH Network (NASDAQ:DISH).
    • See also: Goldman updates list of hedge funds most-shorted stocks (May 21)
    | Thu, May 21, 9:17 AM | 19 Comments
  • Wed, May 20, 10:30 AM
    • Cablevision Systems (NYSE:CVC) has climbed the mountain coming out of today's open, up 11.3% following news of Altice's plans for purchase of control of cable peer Suddenlink.
    • With a $6.4B market cap and 2.8M subscribers, Cablevision is considered an acquisition target in an industry that is churning with rapid-consolidation pressures. Charter Communications is circling Bright House Networks as a precursor to a new bid for Time Warner Cable (TWC +3.7%), and Altice may be a player for TWC as well after its Suddenlink stake.
    • Comcast, for its part, ran into regulatory objections with its bid for TWC and, with 22.4M subscribers, isn't necessarily safe from a potential forced breakup.
    • At the Internet & Television Expo in early May, Cablevision CEO James Dolan suggested openness to tie-ups, encouraging market-by-market consolidation starting with its home market of New York City.
    | Wed, May 20, 10:30 AM | 1 Comment
  • Wed, May 20, 3:57 AM
    • Altice (OTC:ATCEY) has agreed to buy a controlling stake in U.S. cable company Suddenlink in a deal valued at $9.1B, boosting the fast-growing European group into one of the world's largest communications markets.
    • Altice will acquire 70% of Suddenlink from the company’s owners, P-E firm BC Partners and CPP Investment Board.
    • Yesterday, WSJ reported that Altice also has its eyes Time Warner Cable (NYSE:TWC) and has held initial talks with the company about a potential deal.
    • Previously: Cable M&A: Altice reportedly looking at TWC as well as Suddenlink (May. 19 2015)
    | Wed, May 20, 3:57 AM | Comment!
  • Tue, May 19, 9:10 PM
    • France's Altice (OTC:ATCEY) isn't only looking at a multibillion-dollar buy of U.S. cableco Suddenlink -- it's also checking out Time Warner Cable (NYSE:TWC) and has had initial talks with them about a deal.
    • It's an uptick in high-stakes negotiations for the future cable/broadband industry, and those negotiations could pit billionaire Altice founder Patrick Drahi against another titan, John Malone, who would back Charter (NASDAQ:CHTR) in its own deal for TWC.
    • Similar to Charter's approach -- where a deal for Bright House Networks would precede a TWC purchase -- Altice's deal for Suddenlink would be a precursor to its own bid.
    • Time Warner Cable had moved up 1.3% in after-hours action, putting it just above $160/share -- above the $132.50/share that Charter bid for the company in early 2014, and the roughly $158.82 that Comcast (NASDAQ:CMCSA) was offering in its failed bid.
    • Previously: WSJ: Altice in talks for $8B-$10B buy of Suddenlink (May. 19 2015)
    • Previously: Reuters: Charter's $10.4B Bright House buy on track (May. 18 2015)
    • Previously: WSJ: Charter seeking up to $30B in debt for a TWC deal (May. 09 2015)
    | Tue, May 19, 9:10 PM | Comment!
  • Mon, May 18, 3:06 PM
    • Just a little over a week after reports that Bright House Networks was out of any deal to be acquired by Charter (NASDAQ:CHTR) -- which was originally contingent on a successful Comcast-TWC tie-up -- Charter and Bright House say their $10.4B deal is on track.
    • Charter and Bright House owner Advance Newhouse have extended their negotiating period for another 30 days in order to complete the deal.
    • Is it a precursor to a friendly Time Warner Cable (TWC +0.9%) marriage? Bright House has a tight operating relationship with TWC, and those close to Charter say that acquiring both Bright House and TWC is entirely possible, despite concerns about the leverage required to make it happen.
    | Mon, May 18, 3:06 PM | 1 Comment
  • Fri, May 15, 7:07 PM
    • Broadband subscribership grew by nearly 1.2M in Q1, according to a Leichtman Research Group report examining the top 17 ISPs.
    • Cable made up 86% of that growth; Comcast (NASDAQ:CMCSA), the nation's largest MVPD, added 407K users by itself. It's the first quarter since Q1 2008 where cable logged more than 1M net broadband adds, says Bruce Leichtman.
    • Overall, leading ISPs now boast 88.5M subscribers, cable with 53M of those.
    • Not coincidentally, cable's recently had momentum on the network-investment front, with firms like Comcast and CenturyLink (NYSE:CTL) investing in their gigabit broadband installations.
    • Related companies: VZ, T, CMCSA, CHTR, TWC, CVC, CTL, FTR, WIN, FRP, CBB
    • Previously: A hint for Comcast's 2-Gig pricing? (May. 11 2015)
    • Previously: Comcast call: Now more broadband company than cableco (May. 04 2015)
    | Fri, May 15, 7:07 PM | 4 Comments
  • Fri, May 15, 2:42 PM
    • Any talks between Charter Communications (NASDAQ:CHTR) and Time Warner Cable (NYSE:TWC) about a merger may be up in the air, but bankers won't be the bottleneck, as they're ready to talk about $25B or even more to make it happen.
    • Following previous reports that Charter could go for $25B-$30B in debt, the cableco is talking with the same four bankers that committed $24B to Charter's early-2014 bid: Bank of America Merrill Lynch (NYSE:BAC), Credit Suisse (NYSE:CS), Deutsche Bank (NYSE:DB) and Goldman Sachs (NYSE:GS).
    • As one banker noted, "it should be quick to move to next steps, as the banks know the company pretty well," and said the package should end up as two-thirds bonds.
    • Aside from any regulatory issues, leverage seems to be foremost on the mind of dealmakers (and investors). Liberty Broadband's (NASDAQ:LBRDA) Greg Maffei has gone public with the notion that Liberty could raise capital through rights offerings or tap $700M in cash to help with funding while maintaining its 25% stake in Charter.
    • Other banks could join in too, which could make such a deal one of the largest junk bonds ever. Time Warner's on the edge of junk status, rated BBB/Baa2 by S&P and Moody's.
    | Fri, May 15, 2:42 PM | 2 Comments
  • Thu, May 14, 3:13 PM
    • Just as with INTX (the former Cable Show) last week, the MoffettNathanson Conference is another chance to get major cable CEOs in the same space and ask them about consolidation.
    • Thomas Rutledge of Charter (NASDAQ:CHTR) -- which is discussing up to $30B in financing for a TWC deal -- says "Too much leverage is a bad thing," and that he'd be concerned about a 5x ratio of debt/earnings.
    • Time Warner Cable's (TWC +1.5%) Rob Marcus isn't sure consolidation is so inevitable, doubting that "all cable companies will find their way into one of two camps." There are many possible deals where industrial logic doesn't prevail, and social dynamics can get in the way, he says.
    • Rutledge on why Charter could deal where Comcast was rebuffed by regulators: "We’re a very different company and a very different circumstance. We’re not vertically integrated."
    • Rutledge's concern about leverage puts a spotlight back on Greg Maffei's conference-call commentary that a little help from Charter's friends (by way of investment) could ease the deal. Maffei is chief of Liberty Broadband (NASDAQ:LBRDA), which owns 25% of Charter, and says Liberty's got cash and possible rights offerings along with partners.
    | Thu, May 14, 3:13 PM | Comment!
  • Tue, May 12, 6:04 PM
    • Charter Communications (NASDAQ:CHTR) is still in active talks to buy No. 6 cableco Bright House Networks, Bloomberg reports, despite the unwinding of the Comcast-Time Warner Cable (CMCSA, TWC) deal that the original Charter-Bright House agreement was contingent on.
    • The two companies have an exclusivity agreement that lasts through much of this month and may continue talking after that, sources said.
    • A Bright House purchase might set up Charter for its own (re-)pursuit of Time Warner Cable, though such an arrangement would bring together a complicated set of interests, including TWC shareholders as well as Charter's John Malone and Bright House mogul Si Newhouse.
    • Despite Charter's exclusivity period, Time Warner Cable (which has a tight operating relationship with Bright House) can match any offer for Bright House due to first-look provisions.
    • Previously: Reuters: Bright House out of Charter merger deal (May. 07 2015)
    • Previously: 'As the Cable Turns': Industry deal talk turns to Bright House (Apr. 30 2015)
    | Tue, May 12, 6:04 PM | Comment!
  • Sat, May 9, 4:37 PM
    • Charter Communications (NASDAQ:CHTR) is talking with bankers about $25B-$30B in financing to pursue Time Warner Cable (NYSE:TWC), The Wall Street Journal is reporting.
    • Charter's already been sending chatter about a friendly approach this time, in contrast to their hostile bid of 2014 -- so aside from regulators, the key now may be price. Sixteen months ago, Charter wanted TWC for $132.50/share, and Comcast's failed deal was valued around $158.82/share. TWC closed Friday at $154.68.
    • Charter's aware it might have to supply a big chunk of a potential bid in cash, the WSJ says. A deal in the $170-$180 range per share might raise serious concerns about the debt level of the combination.
    • Greg Maffei, CEO of Liberty Broadband (LBRDA, a 25% owner of Charter), said Friday that Liberty would keep its stake in Charter at 25% and that partners may be lining up to help out with a TWC bid.
    • Previously: Liberty's Maffei: Any Charter-TWC deal will be friendly (May. 08 2015)
    • Previously: Reuters: Bright House out of Charter merger deal (May. 07 2015)
    • Previously: WSJ: Charter reaches out to TWC for friendly deal (May. 04 2015)
    | Sat, May 9, 4:37 PM | 5 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