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Time Warner Cable Inc. (TWC)

  • Tue, Nov. 24, 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.
    | Tue, Nov. 24, 2:31 PM | Comment!
  • 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
  • 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!
  • Wed, Oct. 14, 8:05 PM
    | Wed, Oct. 14, 8:05 PM | Comment!
  • Tue, Oct. 13, 2:16 PM
    | Tue, Oct. 13, 2:16 PM | Comment!
  • Mon, Oct. 12, 7:53 PM
    • The National Association of Broadcasters is calling for a suspension of the merger review of Charter (NASDAQ:CHTR) and Time Warner Cable (NYSE:TWC) -- and wants the deal killed unless the agency reforms broadcast ownership rules, currently awaiting an overdue review.
    • The trade group took the opportunity to slam consolidation among distributors in general while broadcasters face more onerous restrictions.
    • “While essentially forbidding the joint sale of advertising time by two TV stations in the same market, the Commission has permitted all major pay-TV providers – large cable operators including TWC, satellite TV operators and the telcos – to join forces to create a single platform for local and national advertisers," says the group's petition.
    • If the Charter-TWC deal goes through, the top four pay-TV providers would control 79% of the nationwide market, the NAB says.
    • A quadrennial review of media ownership was delayed in 2010 and again in 2014.
    • NAB petition
    | Mon, Oct. 12, 7:53 PM | Comment!
  • Tue, Sep. 22, 3:26 PM
    • With its merger review under way, the FCC is asking Charter Communications (CHTR -0.9%) and Time Warner Cable (TWC -0.5%) for documents about customer gains/losses to streaming video competitors, and whether they've slowed or blocked access to those services.
    • We're in early days of the regulatory review of Charter's proposed takeover, but the FCC is showing concern about competition with over-the-top services from Netflix, Hulu and The merger would create the country's second-largest cable company.
    • Shareholders of both Charter and TWC approved the deal overwhelmingly yesterday. The FCC is asking for the information from both companies by Oct. 13.
    • Previously: Charter shareholders near unanimous in favor of TWC, Bright House buyouts (Sep. 21 2015)
    | Tue, Sep. 22, 3:26 PM | Comment!
  • Mon, Sep. 21, 4:36 PM
    | Mon, Sep. 21, 4:36 PM | Comment!
  • Mon, Sep. 21, 2:29 AM
    • Charter Communications (NASDAQ:CHTR) and Time Warner Cable (NYSE:TWC) shareholders will vote today on their proposed $56.7B merger, a deal that would create the country's second-largest broadband Internet provider and third-largest video service.
    • The vote comes a little more than a week after the FCC started a 180-day "shot clock" to review the acquisition.
    • Charter shareholders will also vote on the company’s $10.4B deal for Bright House and the sale of $5B in stock to Liberty Broadband (NASDAQ:LBRDA).
    | Mon, Sep. 21, 2:29 AM | Comment!
  • Fri, Sep. 11, 7:21 PM
    • The FCC's published its protective orders for merger reviews, meaning it's started a clock on Charter Communications' (NASDAQ:CHTR) buyout of Time Warner Cable (NYSE:TWC).
    • Initial comments are due Oct. 13.
    • GOP commissioner Ajit Pai, who dissented from the orders in part, alluded to last year's dispute over giving outside parties access to negotiating documents in the Comcast/TWC and AT&T/DirecTV deals.
    • "A new transaction is upon us," wrote Pai, "and the Commission sees another chance to give outside parties a sneak peek at confidential programming agreements. This Order is obviously the first step in the Commission’s misguided effort to do so."
    | Fri, Sep. 11, 7:21 PM | Comment!
  • Wed, Sep. 2, 5:08 PM
    • The FCC will be able to start the "shot clock" on Charter Communications' (CHTR +1.1%) buyout of Time Warner Cable (TWC +1%), having approved protective orders that can begin a comment cycle.
    • The approvals came despite at least partial dissent from the two Republican commissioners, Ajit Pai and Michael O'Rielly.
    • The disputed portions cover the protection of sensitive deal-related information, which drew attention during the deal reviews for AT&T/DirecTV and Comcast/TWC.
    | Wed, Sep. 2, 5:08 PM | Comment!
  • Fri, Aug. 28, 8:24 PM
    • The telecom/media sectors have been ripe for merger activity and speculation with more than 360 telecom deals announced this year, but cheaper targets are getting harder to come by -- that, according to two of the big spenders.
    • Speaking at CTAM in Amsterdam, Charter Communications (NASDAQ:CHTR) Chairman Eric Zinterhofer said “Asset valuations are high -- we’re not going to pay 9, 10 or 11 times” earnings multiples. Charter's in the middle of assembling funding for its $78.7B buyout of Time Warner Cable (NYSE:TWC) and Bright House Networks. Interest rates will have to rise before the valuations come down, he says.
    • France's Altice (OTCPK:ATCEY), briefly considered a bidder for TWC and harboring ambitions to expand in America, will focus on digesting existing deals, like its purchase of Suddenlink Communications, and including integrating French wireless firm SFR with cableco Numericable.
    • “There are no obvious targets for us, not KPN, not anyone else -- it all depends on price,” says Altice CEO Dexter Goei. “There’s a scarcity of assets that are cheap, but if a stock is too expensive today, maybe we’ll look again in two years when China blows up or something else happens. We’re always opportunistic.”
    • Previous coverage of Charter/TWC/Bright House
    | Fri, Aug. 28, 8:24 PM | Comment!
  • Fri, Aug. 28, 12:50 PM
    • Barclays' Kannan Venkateshwar has raised the firm's price targets on merger partners Charter Communications (CHTR -0.8%) and Time Warner Cable (TWC -0.7%), noting growing operating leverage and what looks like a conservative take on synergies.
    • The price target on Charter was raised to $204, from $157. Based on that, Venkateshwar raised the target on Time Warner Cable to $206, from $166.
    • Time Warner Cable is currently trading at $186.63, implying more than 10% upside, while Charter's trading at $180.28, implying more than 13% upside.
    • Charter's seeing operating leverage for the first time after years of investment, Venkateshwar says, boosting confidence that it could generate earnings growth after engulfing TWC and Bright House Networks.
    • Venkateshwar estimates synergies close to a $1B, higher than Charter's guidance to $800M, and believes the company may be able to boost better margin expansion -- closer to that of Comcast.
    | Fri, Aug. 28, 12:50 PM | Comment!
  • Mon, Jul. 20, 4:09 PM
    • Charter Communications (CHTR +0.9%) is moving forward steadily on its plan to acquire Time Warner Cable (TWC +1%), hiring D.C. lobbyists to help seal the deal in a regulatory environment where nothing's a sure thing.
    • The company has signed up a handful of telecom specialists to usher the deal through Washington, though a major hurdle was surely cleared when Netflix wrote the FCC in support of the takeover.
    • Meanwhile, on the funding side, Charter is raising eyebrows as it's set to become one of the biggest borrowers not only of investment-grade debt but of junk as well, as it tries to set up a deal that values TWC at $78.7B including debt.
    • Charter's already been the third-most active borrower this year, just behind JPMorgan Chase and Actavis; the buyout could leave Charter with up to $66B in debt, and bonds sold by Charter and TWC are losing many times the broader market in 2015.
    • A debt-stoked buying spree had bankrupted Charter in 2009. “Charter is walking on a razor’s edge,” says CreditSights' Chris Ucko. “This is a very unique capital structure, especially given Charter’s size, and very appealing for the issuer. For investors caution is understandable.”
    • Previously: Charter, TWC up after interconnection deal wins Netflix support (Jul. 15 2015)
    | Mon, Jul. 20, 4:09 PM | Comment!
  • Wed, Jul. 15, 1:07 PM
    • Charter Communications (CHTR +2%) and Time Warner Cable (TWC +1.3%) are on the move this afternoon as Charter draws an important ally in its TWC takeover: Netflix (NFLX -2.2%) is endorsing the deal, telling the FCC of "substantial public interest benefit."
    • Charter is offering free interconnection with content/longhaul providers until December 2018, and that's enough to win Netflix's support for the TWC deal -- if Charter keeps that promise.
    • "Charter's new peering policy is a welcome and significant departure from the efforts of some ISPs to collect access tolls on the Internet," Netflix's letter reads.
    • Netflix's opposition to Comcast's deal for TWC is believed to have held a lot of weight in the breakup of that takeover.
    | Wed, Jul. 15, 1:07 PM | 2 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