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Time Warner Cable Inc. (TWC)

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  • Fri, May 15, 2:42 PM
    • Any talks between Charter Communications (NASDAQ:CHTR) and Time Warner Cable (NYSE:TWC) about a merger may be up in the air, but bankers won't be the bottleneck, as they're ready to talk about $25B or even more to make it happen.
    • Following previous reports that Charter could go for $25B-$30B in debt, the cableco is talking with the same four bankers that committed $24B to Charter's early-2014 bid: Bank of America Merrill Lynch (NYSE:BAC), Credit Suisse (NYSE:CS), Deutsche Bank (NYSE:DB) and Goldman Sachs (NYSE:GS).
    • As one banker noted, "it should be quick to move to next steps, as the banks know the company pretty well," and said the package should end up as two-thirds bonds.
    • Aside from any regulatory issues, leverage seems to be foremost on the mind of dealmakers (and investors). Liberty Broadband's (NASDAQ:LBRDA) Greg Maffei has gone public with the notion that Liberty could raise capital through rights offerings or tap $700M in cash to help with funding while maintaining its 25% stake in Charter.
    • Other banks could join in too, which could make such a deal one of the largest junk bonds ever. Time Warner's on the edge of junk status, rated BBB/Baa2 by S&P and Moody's.
    | Fri, May 15, 2:42 PM | 2 Comments
  • Thu, May 14, 3:13 PM
    • Just as with INTX (the former Cable Show) last week, the MoffettNathanson Conference is another chance to get major cable CEOs in the same space and ask them about consolidation.
    • Thomas Rutledge of Charter (NASDAQ:CHTR) -- which is discussing up to $30B in financing for a TWC deal -- says "Too much leverage is a bad thing," and that he'd be concerned about a 5x ratio of debt/earnings.
    • Time Warner Cable's (TWC +1.5%) Rob Marcus isn't sure consolidation is so inevitable, doubting that "all cable companies will find their way into one of two camps." There are many possible deals where industrial logic doesn't prevail, and social dynamics can get in the way, he says.
    • Rutledge on why Charter could deal where Comcast was rebuffed by regulators: "We’re a very different company and a very different circumstance. We’re not vertically integrated."
    • Rutledge's concern about leverage puts a spotlight back on Greg Maffei's conference-call commentary that a little help from Charter's friends (by way of investment) could ease the deal. Maffei is chief of Liberty Broadband (NASDAQ:LBRDA), which owns 25% of Charter, and says Liberty's got cash and possible rights offerings along with partners.
    | Thu, May 14, 3:13 PM | Comment!
  • Tue, May 12, 6:04 PM
    • Charter Communications (NASDAQ:CHTR) is still in active talks to buy No. 6 cableco Bright House Networks, Bloomberg reports, despite the unwinding of the Comcast-Time Warner Cable (CMCSA, TWC) deal that the original Charter-Bright House agreement was contingent on.
    • The two companies have an exclusivity agreement that lasts through much of this month and may continue talking after that, sources said.
    • A Bright House purchase might set up Charter for its own (re-)pursuit of Time Warner Cable, though such an arrangement would bring together a complicated set of interests, including TWC shareholders as well as Charter's John Malone and Bright House mogul Si Newhouse.
    • Despite Charter's exclusivity period, Time Warner Cable (which has a tight operating relationship with Bright House) can match any offer for Bright House due to first-look provisions.
    • Previously: Reuters: Bright House out of Charter merger deal (May. 07 2015)
    • Previously: 'As the Cable Turns': Industry deal talk turns to Bright House (Apr. 30 2015)
    | Tue, May 12, 6:04 PM | Comment!
  • Sat, May 9, 4:37 PM
    • Charter Communications (NASDAQ:CHTR) is talking with bankers about $25B-$30B in financing to pursue Time Warner Cable (NYSE:TWC), The Wall Street Journal is reporting.
    • Charter's already been sending chatter about a friendly approach this time, in contrast to their hostile bid of 2014 -- so aside from regulators, the key now may be price. Sixteen months ago, Charter wanted TWC for $132.50/share, and Comcast's failed deal was valued around $158.82/share. TWC closed Friday at $154.68.
    • Charter's aware it might have to supply a big chunk of a potential bid in cash, the WSJ says. A deal in the $170-$180 range per share might raise serious concerns about the debt level of the combination.
    • Greg Maffei, CEO of Liberty Broadband (LBRDA, a 25% owner of Charter), said Friday that Liberty would keep its stake in Charter at 25% and that partners may be lining up to help out with a TWC bid.
    • Previously: Liberty's Maffei: Any Charter-TWC deal will be friendly (May. 08 2015)
    • Previously: Reuters: Bright House out of Charter merger deal (May. 07 2015)
    • Previously: WSJ: Charter reaches out to TWC for friendly deal (May. 04 2015)
    | Sat, May 9, 4:37 PM | 5 Comments
  • 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
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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