Nov. 26, 2013, 3:14 PM| Comment!
Nov. 26, 2013, 1:16 PM
- Over the last three calendar years an estimated 5M cable and broadband subscribers have been lost as the Pay-TV sector continues to feel the impact of cord-cutting and the coming of age of cord-nevers.
- The consumer shift toward viewing content on the Internet and mobile devices is so well-entrenched that the industry could dip below the 40M subscriber mark for the first time in over five years. A major surprise is that the viewing slump also include major sporting events which were once considered the lynchpin strategy to prevent the cord-cutting phenomenon. (BI chart)
- The recent surge in cable/media stocks is a result of the industry deciding it won't just sit on its hands amid stalled growth and will be open to consolidation.
- Previous: Putting a number to cord-cutting.
- Related stocks: CHTR, CVC, TWC, CMCSA, DISH, DTV.
- Related ETFs: PBS.
Nov. 25, 2013, 7:53 AM
- Wells Fargo analyst Marci Ryvicker looks at what a joint Comcast (CMCSA)/Charter (CHTR) bid for Time Warner Cable (TWC) would look like, with speculation of such a deal ripe (see here and here).
- "There has been much TWC M&A speculation ever since Dr. John Malone took a 27% stake in CHTR in March of this year. Since that time, our view has been (and continues to be) that a break up (rather than an outright purchase by one player) of TWC is most logical; so, we were not surprised by recent press reports suggesting that CMCSA and CHTR might be working together to generate a joint bid for the cable company."
- On the value, she writes: "We calculate ~$1.4B of annual synergies for a CMCSA-TWC partial bid, and ~$700M for CHTR for a CHTR-TWC partial bid, leading to a potential bid of $160 for TWC shares."
- TWC closed +10% on Friday. CHTR was +6%. CMCSA was +4.4%
Nov. 25, 2013, 1:59 AM
- Comcast (CMCSA) and Charter (CHTR) have reportedly discussed breaking up Time Warner Cable (TWC) in any joint bid for the company in order to overcome antitrust objections to a deal.
- The transaction would resemble Comcast's and Time Warner's acquisition of Adelphia Communications in 2006, when Comcast gained 1.7M customers and Time Warner 3.3M.
- A break-up of Time Warner would also make it easier for Charter to gain financing, given that it's much smaller than Time Warner.
- Meanwhile, the NYT carries a profile of John Malone, whose Liberty Media (LMCA) owns 27% of Charter. The article reports that Time Warner Cable has contacted Comcast about a possible transaction, leading to early talks.
Nov. 22, 2013, 2:38 PM
Nov. 22, 2013, 1:50 PM
- Comcast (CMCSA +3%) doesn't think it faces unsolvable regulatory obstacles it if buys Time Warner Cable (TWC +7.5%), say sources.
- Based on geographic coverage area, Comcast and Time Warner Cable make for a logical pair to merge, but several media analysts question the ability to get the DOJ fully on board.
Nov. 22, 2013, 10:08 AM
- Shares of Comcast (CMCSA +2.6%) are on the move after CNBC reports that some significant shareholders are telling management to take a look at bidding for Time Warner Cable (TWC +7.3%).
- Though anti-trust issues can't be ignored, many media analysts think a CMCSA-TWC marriage makes more sense than TWC-Charter (CHTR) coupling.
- Don't forget about Cablevision (CVC): Shares are up 6.4% as investors bet it might make it to the altar as well.
Nov. 22, 2013, 8:21 AM
- Shares of Time Warner Cable (TWC) are active in premarket trading after Charter Communications (CHTR) keeps hacking away at putting together a deal to buy the cable player.
- Earlier this week, TWC CFO Arthur Minson didn't even give a glimmer of inspiration that the company would be receptive to an offer during his Q&A at an investor conference.
- TWC +5.5% premarket to $127.50.
Nov. 22, 2013, 2:46 AM
- Charter Communications (CHTR) is reportedly close to a deal with banks to borrow money to fund a cash and stock offer for Time Warner Cable (TWC).
- Other sources of financing could include sovereign wealth funds and wealthy individuals,
- Charter's largest shareholder, Liberty Media (LMCA), could provide investment in order keep its stake in Charter at or above 25% in the event the latter issued stock to help pay for the purchase. Liberty owns 27% at the moment.
- However, a deal remains a tall order. Time Warner has reacted negatively, while its market cap of $34.45B dwarfs Charter's $13.2B.
Nov. 20, 2013, 10:50 AM
- Time Warner Cable (TWC -0.4%) says it would be open to conversations with Netflix (NFLX +1.6%) about integrating its service directly onto the menus of TWC's set-top boxes.
- The comments came from CEO Artie Minson during an industry conference (previous on CHTR).
- A flirtatious relationship exists between Pay-TV players and Netflix, but none of the majors have made the final leap yet.
- Morgan Stanley Technology, Media & Telecom Conference webcast
Nov. 20, 2013, 7:12 AM| Comment!
Nov. 18, 2013, 12:08 PM
- Time Warner Cable (TWC +0.6%) signs a deal with Discovery Communications (DISCA +0.6%) to license content through the TV Everywhere initiative.
- The deal is another step forward for TV Everywhere, although it's unclear at the moment if TWC subscribers will watch Discovery-owned shows via the cable operator's TV app or through Discovery's own website and mobile app.
Nov. 13, 2013, 7:41 AM
- Research firm MoffettNathanson estimates the pay-TV industry lost 0.2% of its subscriber count in Q3 Y/Y.
- The drop which is partially attributable to the impact of more streaming options for consumers marks the worst 12-month loss of subscribers in the pay TV industry's history.
- In this quarter's batch of earnings conference calls from industry heavyweights, execs showed a great deal of surprise at how resistant the sub-thirty year old crowd is to adding television services on top of broadband.
- Related stocks: DISH, DTV, CHTR, TWC, CVC, CMCSA
- Related earnings call transcripts: VZ, DISH, CHTR
Nov. 7, 2013, 2:01 PM
- Time Warner Cable (TWC -1.1%) and A+E Networks renew a content deal to see programming from the company's stable of networks (A&E, History, Bio, Lifetime) stay available for TWC subscribers.
- Recent deals between broadcasters and programmers have been more about more than just fees. In that vein, the agreement with TWC also covers VOD and out-of-home platforms for A+E content.
- A+Networks is owned 50-50 by Disney and Hearst Corporation.
Nov. 1, 2013, 3:19 PM| Comment!
Oct. 31, 2013, 8:29 AM
- Time Warner Cable (TWC) reports it lost 304K video customers in Q3 after analysts expected a drop of around 182K.
- The quarter included a high-profile blackout of CBS from key TWC markets which undoubtedly played a factor.
- What to watch: The company's painful loss of subscribers adds a big wildcard to future negotiations between broadcasters and cable/satellite players.
- Related stocks: TWX, CMCSA, FOXA, CHTR, DISH, DTV, VIAB, AMCX, CVC, DIS.
TWC vs. ETF Alternatives
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.
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