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.
Jan. 14, 2014, 3:59 PM
- 21st Century Fox (FOXA) starts rolling out an app that will give viewers access to shows from its FX Networks.
- Viewers will have access to 45 to 60 movies a month on top of original programming on their mobile devices through the FXNow app.
- Customers of AT&T's U-verse, Comcast, Cablevision, and Suddenlink are among those that can access the service, while negotiations are still under way to add more Pay-TV operators.
- The advantage for the broadcaster is that the service is supported by advertisements, giving the company a crack at capturing revenue from consumers that prefer delayed viewing of shows.
- What to watch: The list of participating Pay-TV operators is impressive enough that a tipping pointing could be reached where any holdouts (DISH, DTV, TWC) face a competitive disadvantage by not allowing customers access to FXNow.
Jan. 14, 2014, 8:11 AM
- Jefferies thinks a final deal price for an acquirer to nab Time Warner Cable (TWC) will be close to $150 per share.
- Yesterday's opening salvo from Charter Communications (CHTR) in the low-$130s didn't stand a prayer of being accepted, but has negotiations moving forward.
- What to watch: Time Warner Cable is the cable operator that got the hardest hit last year from playing hardball with programmers over carriage fees. Analysts think it might have lost enough leverage that it will have to settle for a deal price below its target level before summer.
- TWC +1.2% to $134.02 premarket.
Jan. 13, 2014, 6:56 PM
- Not surprisingly, Time Warner Cable (TWC) has unequivocally rejected Charter's (CHTR) $132.50/share buyout offer. The company has also confirmed it told Charter last month it's willing to do a deal at $160/share, albeit with a symmetrical collar for the $60/share equity component (rather than an asymmetrical collar, as had been reported).
- Time Warner says Charter's offer values it at 7x EBITDA, a multiple it asserts is "well below past transactions in the cable sector."
- CHTR +1.3% AH. TWC +1.7%.
Jan. 13, 2014, 6:01 PM
- Charter (CHTR) is up 2.1% AH, and Time Warner Cable (TWC) is up 1.8% (to $134.75), following news the former has offered $132.50/share to acquire the latter.
- David Faber reports Time Warner told Charter in December it would sell for $160/share - $100/share + $60/share in stock, with the stock component having an asymmetrical collar (the bid value doesn't change if Charter's shares fall, but it does if they rise).
- Investors seem to be betting a higher bid will be made, but not one close to Time Warner's reported asking price.
Jan. 13, 2014, 4:08 PM
- Following weeks of reports and speculation, Charter (CHTR) has offered to buy Time Warner Cable (TWC) for $132.50/share, or $61B after factoring debt. Charter is offering $83/share in cash and $49.50/share in stock.
- Charter has sent a letter to TWC CEO Rob Marcus outlining its offer.
- The offer price, which might just amount to an opening gambit, represents only a $0.10/share premium to TWC's Monday close. But shares have already rallied on expectations of a deal.
- Update (4:30PM): Charter is now up 1.7% AH. Time Warner Cable is up 0.8%.
Jan. 13, 2014, 3:33 PM
- Cable TV customers at Comcast (CMCSA -2.7%) and Time Warner Cable (TWC -1.5%) will be charged a fee if they choose to switch to a lower-fee programming package, according to Variety.
- Fees range from $2 to $6 depending upon the service.
- What to watch: The tactic could backfire on the companies with new online TV services destined to launch sometime this year. An announcement on Intel's Internet business could come next week. Expect the high pricing in the Pay-TV sector to be a selling point for the new ventures which will offer a more attractive entry point.
Jan. 8, 2014, 3:05 PM
- Time Warner Cable (TWC -1.5%) CFO Arthur Minson says during a presentation at an investor conference that the company saw video subscribers drop again in Q4, but at a decelerating rate.
- The exec disclosed TWC lost 215K video subscribers during the period, while adding 55K high-speed customers.
- Minson also gave the party line when asked about a takeover from another cable company, noting the business wasn't for sale - but any offer would be looked at.
- Citi 2014 Internet, Media & Telecoomunications Conference webcast
Jan. 7, 2014, 11:57 AM
- Online purchases of movies rose 47% to $1.12B in 2013 in the U.S., according to Digital Entertainment Group. The striking growth rate has calmed fears that consumers would opt to wait for rental windows to open up before buying movies.
- Streaming subscription rentals rose 32% to $3.16B during the period.
- Kiosk DVD sales slipped 1%, but the aging business still commanded $1.9B in sales. Brick-and-mortar rentals were off 14.3% to $1.042B.
- If there was a surprise, it might be the relatively slow pace of VOD movie sales, up only 4.8% to $2.11B.
- Full report (.pdf)
- Related stocks: NFLX, OUTR, VZ, CMCSA, CHTR, CVC, TWC, DIS, FOXA, DISH, DTV.
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.
Other News & PR