Feb. 13, 2014, 9:13 AM
Feb. 13, 2014, 7:16 AM
- Time Warner Cable (TWC) and Comcast (CMCSA) expect their merger to be completed by the end of the year in a deal which will give TWC shareholders about 23% of the combined media giant.
- Comcast CEO Brian Roberts says the company wouldn't be this far along if it didn't think it could get it approved with regulators.
- It's estimated that ~3M subscribers will be divested to give the merged company close to 30M subscribers - about 30% of the total U.S. Pay-TV market.
- Shares of Charter (CHTR) are down 7.0% in the premarket session as the company is left jilted. Comcast (CMCSA) is up 2.1%, while Time Warner Cable gains 11.6% to $151.03 - still 5.2% shy of the acquisition price of $158.82.
Feb. 13, 2014, 6:47 AM
- Comcast (CMCSA) has confirmed reports that it has agreed to acquire Time Warner Cable (TWC) for $45.2B, or $158.82 a share.
- The transaction will generate $1.5B in savings and will be accretive to Comcast's cash flow, and it will be tax free to Time Warner's shareholders.
- The merger will create a cable TV behemoth with 30M subscribers, so it wouldn't be a surprise if it were to face huge, if not insurmountable, regulatory hurdles.
- Time Warner's shares are +12% at $151.50 premarket after closing at $135.31 yesterday. Comcast is +1.4%. (PR)
Feb. 12, 2014, 10:38 PM
Feb. 12, 2014, 1:58 PM
- Bloomberg reports Apple (AAPL +0.3%) plans to launch a new Apple TV set-top as soon as April, and is still talking with Time Warner Cable (TWC -0.1%) and others about supporting their content.
- The news service cautions the set-top's launch date could change due to the timing of content deals. It reported last July a deal with Time Warner Cable is expected to happen within a few months. Unlike many of their peers, TWC execs have suggested they're comfortable giving up UI control for hardware that supports their services.
- Recent reports indicate a next-gen Apple TV will also support physical game controllers, and thus act as a casual gaming alternative to traditional consoles. Amazon and Google are also reportedly working on set-tops that support gaming.
Feb. 11, 2014, 9:22 AM
- Charter (CHTR) confirms it has proposed a full slate of independent candidates for the Time Warner Cable (TWC) board. The 13 names run the gamut up and down the media, retail, and cable industry.
- The move is in part to advance talks and pressure TWC to accept a lower acquisition offer price.
- Analyst take: UBS thinks a deal price at $145 per share, repping 7.8X 2015 EBITDA, might get the job done.
- TWC +0.9% premarket to $136.95.
Feb. 7, 2014, 3:29 PM
Jan. 31, 2014, 6:11 PM
- Reuters reports Charter (CHTR) is thinking of raising its bid for Time Warner Cable (TWC) to the "low 140s per share range," and could make a move within two weeks.
- A source says Charter's change of heart - Charter offered $132.50/share in mid-January, and was quickly rebuffed - is due to "feedback from Time Warner Cable investors Charter has received in its two-week roadshow."
- Reuters adds Charter is still talking with Comcast (CMCSA - previous) about "how to carve up Time Warner's markets" in the event of a joint bid.
- Comcast, which could face regulatory scrutiny in the event it tries to expand, is said to be interested in Time Warner's NYC systems, as well as some of its New England assets. Sources state a deal could also result in some Charter systems going to Comcast.
- TWC +2% AH
Jan. 30, 2014, 6:06 AM
Jan. 30, 2014, 6:05 AM
Jan. 27, 2014, 2:24 PM
- Comcast (CMCSA +0.8%) will step up to buy cable assets from Charter Communications (CHTR +3.9%) if Charter gets the green light to merge with Time Warner Cable (TWC -0.1%), according to Bloomberg.
- The cable operators have an agreement in principal on what Comcast would pay for Charter assets in New York City, North Carolina, and New England.
- Charter is also busy lining up directors to nominate to TWC's board as it looks to exert more pressure on shareholders to accept its offer.
Jan. 26, 2014, 1:39 AM
- Comcast (CMCSA) reportedly prefers joining up up with Charter Communications (CHTR) to bid for Time Warner Cable rather (TWC) than making an offer on its own.
- Comcast thinks TWC's asking price of $160 a share is too high, while the latter isn't interested in selling itself in a piecemeal fashion.
- Charter is willing to let Comcast have TWC's New York-area cable systems in exchange for Comcast backing Charter's bid. The New York network would fit in nicely with Comcast's operations in Connecticut and New Jersey.
Jan. 21, 2014, 1:54 PM
- Charter Communications (CHTR -0.2%) warns in a new presentation posted on its website that Time Warner Cable (TWC -0.6%) is losing its value as an acquisition target with every day.
- Steep video subscribers losses and a low growth rate for its Internet business is putting downward pressure on TWC's value, says Charter.
- The company thinks its offer to buy Time Warner Cable is different than prior bids because it gives shareholders a 45% piece of the new entity.
- Also, the impact of tax assets can't be ignored under the Charter offer.
- Presentation slides (.pdf)
Jan. 17, 2014, 10:07 AM
- Comcast (CMCSA -0.4%) will have a lot to say in how consolidation in the cable industry (CHTR, LMCA, CVC) works itself out.
- The company seems to play a role, major or minor, in nearly every permutation of a Time Warner Cable (TWC +0.3%) takeover, note analysts.
- Brean Capital on Comcast's CEO: "Brian Roberts is very much a kingmaker here."
Jan. 15, 2014, 6:54 PM
- Reuters reports Charter (CHTR) has "reached out" to Comcast (CMCSA) about a joint bid for Time Warner Cable (TWC), after Time Warner spurned Charter's $132.50/share offer. Charter and Comcast are said to be "in preliminary discussions about how to structure a potential alliance."
- One source says a bid could involve Charter buying Time Warner in full, and then selling off some subscribers to Comcast.
- Regulators are bound to closely scrutinize any major cable asset purchases made by Comcast, given its enormous size.
- More on Charter/Time Warner Cable
Jan. 15, 2014, 7:12 AM
- Charter (CHTR) COO John Bickham did his best to justify why Time Warner Cable (TWC) is only worth around $132.50 per share during a conference call with the media and analysts yesterday.
- The exec says Time Warner Cable is guilty of a implementing a failed operating strategy as witnessed by its sharp losses in subscribers.
- Management doesn't have a high vision on standards and has left the company in a position that would require more work than Charter originally thought.
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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