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Time Warner Cable Inc. (TWC)

  • Fri, May 8, 4:34 PM
    • On a Q1 earnings call today, Liberty Media's (NASDAQ:LMCA) CEO Greg Maffei said any deal that Charter Communications (CHTR; partly owned by Liberty) would make for Time Warner Cable (NYSE:TWC) would be "friendly," in contrast to Charter's early-2014 hostile attempt -- and that many partners are ready to step in if Charter needs more capital.
    • "There's a wide range of things we could do there, starting with obviously the $700M of cash on the balance sheet," he said, before mentioning raising equity capital through rights offerings or the partners who would like to invest in such a deal.
    • Asked about the dispute over management in the previous bid, Maffei said: "I believe any transaction that goes forward ... would be a friendly transaction, looking for the best of breed in both management teams, and trying to drive an improved experience both for consumers and shareholders."
    • Whatever happens, Maffei says Liberty wants to keep its 25% ownership of Charter.
    • More at the WSJ
    | Fri, May 8, 4:34 PM | Comment!
  • Thu, May 7, 6:27 PM
    • Bright House Networks is going to walk away from its $10.4B deal to be bought by Charter Communications (NASDAQ:CHTR), Reuters reports.
    • The deal was contingent on a successful Comcast (NASDAQ:CMCSA) purchase of Time Warner Cable (NYSE:TWC) -- a plan that was dropped two weeks ago -- but it did have a 30-day renegotiation period. Negotiations still formally continue, but Bright House (the nation's sixth-largest cable operator) looks to be out in any case.
    • As another step in the day-to-day consolidation soap opera of "As the Cable Turns," it's important to note that Time Warner Cable has a tight relationship with Newhouse-family owned Bright House: TWC negotiates Bright House's programming and technology deals for a fee, and has right of first offer on the Newhouses' cable systems.
    • Previously: WSJ: Charter reaches out to TWC for friendly deal (May. 04 2015)
    • Previously: Charter off 1.1%; loss widens amid Comcast-TWC failure (May. 01 2015)
    • Previously: 'As the Cable Turns': Industry deal talk turns to Bright House (Apr. 30 2015)
    | Thu, May 7, 6:27 PM | Comment!
  • Wed, May 6, 1:08 PM
    • On stage in general session at the Internet & Television Expo (INTX), panel moderator Julia Boorstin assembled nearly all major cable CEOs and pressed them on hot M&A issues.
    • Most were circumspect -- "The world's full of possibilities, but I can't tell you any of them," said Charter (NASDAQ:CHTR) CEO Tom Rutledge -- but James Dolan, CEO of Cablevision (CVC +6%), wasn't, urging market-by-market consolidation instead, starting with CVC's home market of New York City.
    • “Consolidation of that marketplace would provide, one, a great deal of ingenuity and much more access to resources for the customers and lower prices,” he said, suggesting specifically that he'd deal with Time Warner Cable (NYSE:TWC), "and Comcast (NASDAQ:CMCSA) and other operators."
    • Shares moved up 6% after his comments on indications that Cablevision might sell to a suitable acquirer.
    • Previously: WSJ: Charter reaches out to TWC for friendly deal (May. 04 2015)
    • Previously: 'As the Cable Turns': Industry deal talk turns to Bright House (Apr. 30 2015)
    | Wed, May 6, 1:08 PM | 1 Comment
  • Mon, May 4, 2:33 AM
    • Charter Communications (NASDAQ:CHTR) is heading toward a potential merger with Time Warner Cable (NYSE:TWC) again, WSJ reports, but is now opting for a more amicable approach compared to last year's unsolicited bid.
    • John Malone, chairman of Charter's biggest shareholder Liberty Broadband (NASDAQ:LBRDA), called Time Warner Cable's Rob Marcus "in recent days" to express Charter's interest in pursuing friendly deal talks.
    • The two sides will continue discussing their options this week, when Charter CEO Tom Rutledge meets Marcus at the annual National Cable & Telecommunications Association convention in Chicago.
    • Previously: CNBC: Charter, TWC to discuss merger next week (Apr. 29 2015)
    | Mon, May 4, 2:33 AM | 1 Comment
  • Thu, Apr. 30, 3:47 PM
    • With Comcast's (CMCSA -1.2%) pursuit of Time Warner Cable (TWC -1.4%) dashed on the rocks, TWC and Charter Communications (NASDAQ:CHTR) have (separately) contacted Bright House Networks in the past week about acquiring them, The Wall Street Journal is reporting.
    • With about 2M subscribers, Bright House is sixth-largest among cable MSOs. Charter had a deal to acquire Bright House a month ago, but that was contingent on the Comcast-TWC combo, so they need to start again during a 30-day "good faith" cycle.
    • Time Warner Cable's interest in adding Bright House could be in making itself much tougher to acquire, and it would likely make the owning Newhouse family the biggest shareholder of the combination. In a deal with Charter, John Malone and Liberty Broadband (NASDAQ:LBRDA) would have the biggest voting stake.
    • Meanwhile, TWC has deep ties to the Newhouse company -- TWC negotiates Bright House's programming and technology deals for a fee, and has right of first offer on the Newhouses' cable systems, the WSJ notes.
    • Previously: TWC misses on earnings, logs best subscriber quarter (Apr. 30 2015)
    • Previously: CNBC: Charter, TWC to discuss merger next week (Apr. 29 2015)
    | Thu, Apr. 30, 3:47 PM | Comment!
  • Thu, Apr. 30, 9:17 AM
    • Time Warner Cable (NYSE:TWC) doesn't have a merger partner -- yet -- but it is pointing to its "best subscriber quarter ever" in a mixed Q1 earnings report where it missed expectations on top and bottom lines.
    • "We are a far stronger company than we were just five short quarters ago," says CEO Rob Marcus.
    • Residential video net additions of 30K, its first positive quarterly net adds since Q1 2009. Residential high-speed data net adds of 315K, the best quarter for that number since Q1 2007.
    • Residential voice net adds of 320K and triple-play net adds of 298K marked the best-ever quarters for those numbers.
    • EBITDA of $1.996B missed an expected $2.067B.
    • Residential revenues: Video, $2.47B (down 1%); High-speed data, $1.7B (up 8.9%); Voice, $473M (down 4.6%); Other, $24M (up 26%).
    • Business Services revenues: Video, $94M (up 5.6%); High-speed data, $376M (up 22.9%); Voice, $142M (up 20.3%); Wholesale transport, $121M (up 19.8%); Other, $48M (down 11.1%).
    • Capex was $1.1B as the company continued to roll out TWC Maxx in Kansas City, Dallas and San Antonio.
    • Press release
    | Thu, Apr. 30, 9:17 AM | Comment!
  • Thu, Apr. 30, 6:02 AM
    • Time Warner Cable (NYSE:TWC): Q1 EPS of $1.65 misses by $0.23.
    • Revenue of $5.78B (+3.6% Y/Y) misses by $50M.
    • Press Release
    | Thu, Apr. 30, 6:02 AM | Comment!
  • Wed, Apr. 29, 9:48 AM
    | Wed, Apr. 29, 9:48 AM | Comment!
  • Tue, Apr. 28, 8:42 PM
    • During T-Mobile's (NYSE:TMUS) Q1 earnings call, colorful CEO John Legere took another opportunity to hint at the tie-up that increasingly seems to be in the company's future: with a cableco that offers broadband.
    • Just days after FCC opposition killed the Comcast-TWC merger, Legere pointed to the need to counterbalance AT&T (NYSE:T) and Verizon (NYSE:VZ), which combine wireless service with broadband offerings and even TV business.
    • Regulators seem to be opposed to cable-cable deals, and wireless-wireless deals like aborted plans for a Sprint (NYSE:S) merger with T-Mobile -- but Legere notes a natural fit may occur across industries: "The tangential players are touching mobile players in a way that makes a go-to-market strategy."
    • Analyst Craig Moffett urges caution, as regulators might already see the two industries as competition. "Wireless broadband is clearly the FCC's best hope for a counter to cable's wired advantage. They might decide that they aren't ready to allow a combination like that."
    • Possible cable suitors: CMCSA, TWC, CHTR, CVC
    • After earnings today, TMUS -0.3%.
    • Related: T-Mobile US (TMUS) Q1 2015 Results - Earnings Call Transcript (Apr. 28 2015)
    • Previously: T-Mobile grows Q1 revenues 13%, adds 1.8M subscribers (Apr. 28 2015)
    • Previously: T-Mobile keeps fanning Dish partnership flames (Mar. 06 2015)
    | Tue, Apr. 28, 8:42 PM | 21 Comments
  • Mon, Apr. 27, 8:25 PM
    • After fighting off a hostile bid from Charter Communications (NASDAQ:CHTR) just over a year ago, Time Warner Cable (NYSE:TWC) is now open to merger talks with the cableco now that Comcast (NASDAQ:CMCSA) has called off its $45B friendly pursuit, Reuters reports.
    • One key change from before: TWC now views Charter stock as more valuable this time around. CHTR shares are up 40.7% over the past 12 months.
    • Still, the deal would have to be significantly sweeter as well. Charter's previous hostile bid for TWC was for about $132.50/share; Comcast's $45B offer was valued around $158.82/share.
    • As for competitive concerns, Charter/TWC would have about 15M video customers, whereas Comcast/TWC would have had about 30M.
    | Mon, Apr. 27, 8:25 PM | Comment!
  • Mon, Apr. 27, 4:17 PM
    • Time Warner Cable (NYSE:TWC) reached out to a resistant Cox Communications to talk merger, The Wall Street Journal reports, but a TWC spokesperson tells Reuters "It's simply not true."
    • "We have not engaged in any discussions with Cox," says TWC's Susan Leepson.
    • Meanwhile, Cox indicates "We’ve been clear we’re not for sale and we’ll continue to explore any potential growth opportunities that align with our business objectives."
    • TWC is the second-largest cable provider in the country, with some 12.25M subscribers, and Cox is No. 3 with 4.5M. TWC's failed merger partner, Comcast, is No. 1 with 22.4M subscribers.
    • Previously: It's over: Comcast officially ends $45B pursuit of TWC (Apr. 24 2015)
    | Mon, Apr. 27, 4:17 PM | Comment!
  • Fri, Apr. 24, 2:48 PM
    | Fri, Apr. 24, 2:48 PM | 3 Comments
  • Fri, Apr. 24, 9:15 AM
    • Comcast (NASDAQ:CMCSA) is trading up 1.3% premarket, and Time Warner Cable (NYSE:TWC) is 0.8% higher as well, after confirmation that their $45B merger deal is dead.
    • In statements by the Justice Dept. and FCC thanking each other for their cooperation, it's clear that FCC Chairman Tom Wheeler was against the deal, which would have made agency approval a very long shot.
    • It's also clear why Wheeler was opposed: It's about broadband, not cable, and protecting the burgeoning streaming video market. "The proposed merger would have posed an unacceptable risk to competition and innovation especially given the growing importance of high-speed broadband to online video and innovative new services."
    • While Comcast doesn't pay a breakup fee with the deal's end, that doesn't mean everyone walks away cheaply: Advisers including bankers and lawyers will lose out on $380M in fees, chiefly Goldman Sachs (NYSE:GS), banker for Charter Communications (NASDAQ:CHTR). J.P. Morgan Chase (NYSE:JPM) will drop from second to third in the league tables. As a mitigating factor, more deals are likely on the way, though.
    • Other sector players premarket: AT&T -0.3%; Verizon -0.2%.
    | Fri, Apr. 24, 9:15 AM | 4 Comments
  • Fri, Apr. 24, 8:34 AM
    • After a late Thursday board meeting, Comcast (NASDAQ:CMCSA) has confirmed it's dropping its $45B plan to acquire Time Warner Cable (NYSE:TWC) -- a stunning reversal of a 15-month plan, which got less stunning as hurdles began to mount in recent weeks.
    • "Today, we move on," says Comcast CEO Brian Roberts. "Of course, we would have liked to bring our great products to new cities, but we structured this deal so that if the government didn't agree, we could walk away." It's a cheap walk-away for Comcast, which had no breakup fee in the deal.
    • What next? Consolidation is still likely in a deeply uncompetitive industry. Other companies are now officially front and center in pursuit of TWC, notably John Malone's Charter Communications (NASDAQ:CHTR), which could re-launch its own failed effort. CHTR-TWC would have 16.5M broadband subscribers together, less than Comcast's 22M.
    • Charter's deal with Comcast aimed at divestment and easing the Comcast-TWC transaction also blows up. What about Charter's deal to acquire Bright House?
    • As for Comcast, it could take its stored-up momentum outside of cable -- to someone like Netflix (NASDAQ:NFLX), as BTIG's Rich Greenfield hints? Or to a telecom like T-Mobile (NYSE:TMUS)?
    • Updated: Time Warner Cable statement. "We have always believed that Time Warner Cable is a one-of-a-kind asset," says Chairman and CEO Robert D. Marcus. "We are strong and getting stronger."
    | Fri, Apr. 24, 8:34 AM | 23 Comments
  • Thu, Apr. 23, 3:09 PM
    • Bloomberg reports Comcast (CMCSA +2.2%) plans to drop its hotly-contested efforts to merge with Time Warner Cable (TWC +0.7%), and could make an announcement as soon as tomorrow. Comcast has moved higher in response.
    • The report comes a day after the WSJ reported the FCC staff recommends a hearing on the deal, and a week after Bloomberg reported DOJ antitrust lawyers are leaning against it.
    • Charter (CHTR +0.4%), which has suggested it's interested in TWC if the Comcast deal falls through, has moved slightly higher.
    | Thu, Apr. 23, 3:09 PM | 9 Comments
  • Wed, Apr. 22, 9:19 PM
    • A key setback for Comcast's (NASDAQ:CMCSA) $45B takeover of Time Warner Cable (NYSE:TWC) as FCC staff has recommended that the agency designate a hearing -- what some regulatory experts call a "deal-killer," The Wall Street Journal reports.
    • A "hearing designation order" would put the merger in the hands of an administrative law judge, and while Comcast would be able to keep making its case, it would be a strong sign the FCC doesn't see the merger to be in the public interest.
    • Earlier, Comcast execs sat down with the Dept. of Justice and the FCC in hopes of salvaging a deal that is running into significant hurdles at the government level.
    • Previously: Comcast-TWC deal moves to Capitol Hill in day of talks (Apr. 22 2015)
    | Wed, Apr. 22, 9:19 PM | 12 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