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Time Warner Cable Inc. (TWC)

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  • Tue, Mar. 31, 3:17 PM
    • Charter Communications (NASDAQ:CHTR) is up 6.2% and has touched a record-high $199 in the wake of its deal to acquire Bright House Networks, which would make it the country's No. 2 cable operator (Charter is now No. 4; Bright House is No. 6).
    • The deal's dependent on Comcast's (NASDAQ:CMCSA) successful pursuit of Time Warner Cable (NYSE:TWC) -- Charter's own bid for TWC fell apart, and Charter could step back in if Comcast's plan falters -- and if Comcast takes such a clear lead, Charter may not stop at Bright House in trying to catch up.
    • Mediacom, CableOne and Suddenlink could be the next targets. "I think it is inevitable most of the rest of the cable industry not owned by Comcast is sold to Charter," Pivotal Research Group analyst Jeff Wlodarczak tells Reuters.
    • As for John Malone, his Liberty Broadband (NASDAQ:LBRDA) -- Charter's biggest shareholder -- has agreed to purchase $700M of shares in the Charter/Bright House combo, in transactions that would leave it with voting power of about 25%.
    • Charter bonds picked up on the news as well.
    | Tue, Mar. 31, 3:17 PM | 6 Comments
  • Tue, Mar. 31, 9:05 AM
    • Charter Communications (CHTR, up 5.2% premarket) has reached agreement to acquire Bright House Networks for $10.4B.
    • The outlines of a deal were there, but it's early -- it was expected that a ruling would come down on Comcast's (NASDAQ:CMCSA) merger with Time Warner Cable (NYSE:TWC) before Charter made a move.
    • The structure: a partnership where Charter owns 73.7% and Advance/Newhouse owns 26.3%. Charter will pay $2B in cash.
    • There's still several conditions to wrapping the deal, including Charter transactions with Comcast.
    | Tue, Mar. 31, 9:05 AM | Comment!
  • Tue, Mar. 17, 2:03 PM
    • With the proposed merger of Comcast (NASDAQ:CMCSA) and Time Warner Cable (NYSE:TWC) getting all the oxygen from the post-net-neutrality FCC, the $48.5B deal that AT&T (NYSE:T) has to acquire DirecTV (NASDAQ:DTV) appears to be getting a relatively free pass.
    • Both deals will create a company controlling more than a quarter of pay TV -- so it may be Internet access that's drawing extra scrutiny. The combined Comcast-TWC company would serve high-speed Internet to almost 40% of Americans.
    • Even FCC petitions opposing the deals are telling: 20 against Comcast-TWC, five against AT&T-DirecTV. And 88,000 brief comments opposing Comcast-TWC, 14,000 opposing AT&T-DirecTV.
    • One critic of the T-DTV deal told Reuters that Justice Department reviewers responded in a meeting with "few questions" and "blank stares."
    • Today: CMCSA -0.7%; TWC -1%; T +0.1%; DTV +0.2%.
    • Previously: FCC pauses review of Comcast-TWC, AT&T-DTV; likely weeks away (Mar. 13 2015)
    • Previously: Brean downgrades DirecTV to Hold; AT&T offer priced in (Feb. 23 2015)
    | Tue, Mar. 17, 2:03 PM | 5 Comments
  • Tue, Mar. 17, 10:03 AM
    • Time Warner Cable (NYSE:TWC) declares $0.75/share quarterly dividend, in line with previous.
    • Forward yield 1.89%
    • Payable April 22; for shareholders of record April 1; ex-div March 30.
    | Tue, Mar. 17, 10:03 AM | Comment!
  • Fri, Mar. 13, 4:28 PM
    • As signaled before, the FCC has paused the 180-day "shot clock" on reviewing two megamergers -- Comcast's (NASDAQ:CMCSA) deal for Time Warner Cable (NYSE:TWC), and AT&T's (NYSE:T) deal to buy DirecTV (NASDAQ:DTV) -- as it's tied up with another case over programming contracts.
    • The review of the deals was set to expire by the end of March, but now may take somewhat longer, likely several more weeks.
    • The cause is the ongoing dispute with programming firms -- Disney (NYSE:DIS), CBS, Twenty-First Century Fox (NASDAQ:FOXA), Viacom (VIA, VIAB) and others -- over whether third parties commenting on the mergers will get access to private documents containing sensitive pricing and strategy information.
    • The FCC has argued it has sufficient protections to keep those details from getting out. But the merger reviews now appear to be dependent entirely on that case's timetable.
    • "In reaching this conclusion, the commission reserves the right to restart the clock as it believes will best serve the public interest," the FCC said.
    | Fri, Mar. 13, 4:28 PM | 12 Comments
  • Wed, Mar. 11, 8:34 PM
    • Digitalsmiths -- the data research company owned by TiVo (NASDAQ:TIVO) -- has a white paper out suggesting that 1.5M Americans plan to cut the cord and ditch their pay television service, while another 38.1M are dissatisfied -- two-thirds of those because of the cost.
    • The report -- based on its sample of more than 3,000 subscribers -- says 8.9% switched pay-TV providers in the prior three months, up 2.1% Y/Y.
    • Another interesting number: 78.7% of respondents watch 10 channels or fewer -- which has to make future cord-cutters wonder what they're really paying for.
    • While the report is largely bad news for pay TV, parent company TiVo is marketing devices both for cord-cutters and for its pay-TV partners. And 20.4% of survey takers recently upped the level of their pay service. (hat tip: FierceCable)
    • Pay TV stocks today: CMCSA -1.1%; TWC -0.5%; CVC -1%; CHTR +0.7%; T -0.5%; VZ +0.4%.
    | Wed, Mar. 11, 8:34 PM | 39 Comments
  • Mon, Mar. 9, 6:41 PM
    • Making the rounds after Apple's Watch event, HBO (TWX +1.3%) CEO Richard Plepler says he talked to Apple's (AAPL +0.4%) senior VP Eddy Cue last spring about a "shared vision" for the TV service -- though HBO's programming partners are scrambling a bit to sort out a response this month.
    • On the thorny issue of HBO's cable/satellite partners who may object: "We are talking to all of our partners," Plepler says, adding HBO thought "it would be a great vehicle for them."
    • While Apple has a three-month exclusive for its devices, program providers could get into that window via their existing relationship with HBO. Cablevision (NYSE:CVC) and Cox Communications were known to be in discussions with HBO already about providing the service. Cox is mum so far on how/if it will make HBO Now available to broadband-only customers.
    • Apple makes a pretty good partner for a content company that has no experience with direct customer service; meanwhile, Apple has a massive payments infrastructure and 400M credit cards already set up. NPD analyst John Buffone tells Tom's Guide that Apple TV is No. 1 in their last streaming device report, ahead of Roku, Chromecast and Fire TV. It's used by 25M.
    • No exclusive window comes without money changing hands; while financial terms are undisclosed, it's possible there's a middle ground between the 30% cut that Apple takes in apps and the 50-50 split HBO has with some existing program partners. HBO thinks the addressable market is 10M broadband-only subscribers, meaning a landscape of $150M/month to split more or less evenly.
    • Related programmers: CMCSA, TWC, T
    | Mon, Mar. 9, 6:41 PM | 34 Comments
  • Fri, Feb. 27, 6:37 PM
    • Fresh off their vote for re-regulation of Internet transmissions, the five FCC commissioners will be spending mid-March on Capitol Hill answering to the GOP Congress.
    • The House Energy and Commerce Committee is holding its hearing March 19, a day after the members are scheduled with the Senate Commerce Committee.
    • The chairmen of the two committees, Greg Walden and John Thune, are backing a bill that would reverse the FCC's Title II reclassification (treating Internet providers more like utilities) and substantively narrow its approach to ensuring net neutrality.
    • Following the 3-2 vote, major carriers indicated their strategy would be twofold: Lawsuits (CMCSA, T, VZ, CHTR worried about "years" of litigation); and legislative action to undo the move, with a cooperative congress apparently ready to act.
    • Other related stocks: CVC, TWC, CTL, FTR, ELNK, DISH, DTV, CCOI
    | Fri, Feb. 27, 6:37 PM | 66 Comments
  • Thu, Feb. 26, 1:39 PM
    • In the wake of the FCC's new regulations, key telecom and Internet stocks are tracking mostly where they were prior to the vote -- in part due to the fact that the vote's likely outcome was baked in, but also because details (including any late changes) are yet to be published.
    • The FCC majority must review and respond to the dissenters before publishing the result, which they will provide on the Web when it's ready.
    • Key stocks largely unchanged from the morning: Comcast (CMCSA -1.2%), Time Warner Cable (TWC -1.9%), Cablevision (CVC +1.3%), Charter (CHTR -1%), Centurylink (CTL +0.4%), Frontier (FTR +0.9%), Cogent (CCOI -1%).
    • AT&T (T +0.9%); Verizon (VZ +0.4%); Dish Network (DISH -0.6%); DirecTV (DTV +0.1%).
    • Netflix (NASDAQ:NFLX) -- whose traffic is such that the regulatory difference in its delivery costs may mean as much as $100M/year -- is up 1.6%. Interconnection fees may yet need some clarification.
    • For its part, Verizon (NYSE:VZ) uses its old-fashioned typewriter to put out a press release for "Feb. 26, 1934" warning that rules "written in the era of the steam locomotive and the telegraph" won't work today.
    • Speaking of Verizon: Next up will be lawsuits. Courts invalidated the FCC's last two attempts at net neutrality, most recently in January 2014.
    • Wheeler statement on vote
    • Previously: Report: AT&T, Verizon will sue FCC immediately after reclassification (Feb. 04 2015)
    | Thu, Feb. 26, 1:39 PM | 42 Comments
  • Thu, Feb. 26, 1:01 PM
    • The FCC approves tough net neutrality restrictions on the Internet -- reclassifying broadband services under Title II of the Telecommunications Act -- on a party-line vote of 3-2.
    • Republican commissioners Ajit Pai and Michael O'Rielly opposed the measure.
    • To open applause, Chairman Tom Wheeler said the action is an "irrefutable reflection of the principle that no one -- whether government or corporate -- should control free and open access to the Internet."
    • Pai thinks the result of reclassification will be even less competition, and calls the rules a "Kingsbury Commitment for the digital age ... If you loved Ma Bell in the 20th century, you will love Pa Broadband in the 21st."
    • Prior to the key net neutrality vote, the commission voted along the same party lines to pre-empt laws in North Carolina and Tennessee that put restrictions on municipal broadband initiatives.
    • Related stocks: CMCSA, CVC, TWC, CTL, CHTR, FTR, T, VZ, NFLX, ELNK, DISH, DTV, CCOI
    • Previously: FCC begins convening for historic net neutrality vote (Feb. 26 2015)
    | Thu, Feb. 26, 1:01 PM | 62 Comments
  • Thu, Feb. 26, 10:29 AM
    • The FCC is ready to begin a meeting at which it plans a historic vote on re-regulating Internet providers, though a bit of the drama has gone out of the vote as Congressional Republicans yesterday conceded approval is likely.
    • That's not to say some things aren't still in flux this morning: Democratic commissioner Mignon Clyburn is pressing Chairman Tom Wheeler for some more clarity on one part of the proposal, and Google lobbying on the "sender pays" issue has apparently moved Wheeler to last-minute revisions.
    • The vote is expected to end 3-2 in favor of Title II regulation, along party lines.
    • Republican commissioner Ajit Pai continues his full-court press against the rules and will hold his own response press conference after the meeting.
    • Meanwhile, Wheeler's proposal may not go far enough to achieve its goals, if key loopholes remain available to service providers.
    • The FCC will start meeting at 10:30 a.m. ET, and will first vote on whether to pre-empt laws in North Carolina and Tennessee restricting municipal broadband.
    • Related stocks: CMCSA, CVC, T, VZ, TWC, NFLX, CTL, CHTR, FTR, ELNK, DISH, DTV, CCOI
    | Thu, Feb. 26, 10:29 AM | 25 Comments
  • Thu, Feb. 26, 2:50 AM
    • The FCC is expected to approve Chairman Tom Wheeler's proposed "net neutrality" rules today, which will regulate broadband providers more heavily than in the past and restrict their power to control download speeds on the web.
    • The vote comes after a year of jostling between net neutrality advocates and cable and telecom companies, which are expected to launch a volley of lawsuits should the new rules be passed.
    • Related stocks: CMCSA, CVC, T, VZ, TWC, NFLX, CTL, CHTR, FTR, ELNK, DISH, DTV, CCOI
    | Thu, Feb. 26, 2:50 AM | 66 Comments
  • Tue, Feb. 24, 12:25 PM
    • Comcast (NASDAQ:CMCSA) is "optimistic" it will close its $45B acquisition of Time Warner Cable (NYSE:TWC) in "early 2015," and CEO Brian Roberts' comment on today's earnings conference call that there's "lots of information-gathering" between Comcast and regulators is likely an understatement.
    • Roberts hopes that as soon as the FCC handles this week's vote on re-regulation (a stance he calls "antiquated"), the commission can turn its attention to the TWC transaction.
    • As part of its Cable Communications revenue (up 6.1% to $11.3B), Comcast noted a 9.9% increase in revenue from high-speed Internet (to $2.9B), which outpaced Video (up 1.3% to $5.19B).
    • And while NBCUniversal revenues were up 2.3%, that was mitigated by a revenue slip in filmed entertainment -- down 10.6% to $1.3B -- as home entertainment revenue slipped. Theme parks carried the day for this division, up 30% to $735M.
    • The company dropped some hints about how it might move into WiFi-fueled services, like Cablevision (NYSE:CVC) has, and has deployed about 8.3M hotspots, in-home and outdoors: “We do believe in the asset and [are] working on ways on bringing it to market in the coming months," says Cable CEO Neil Smit, noting it might even evolve into a new business. Comcast has MVNO relationships with Sprint and Verizon.
    • Currently, CMCSA up 1.7%.
    • Q4 earnings
    • Previously: Comcast beats on revenue as cable sales grow 6% (Feb. 24 2015)
    | Tue, Feb. 24, 12:25 PM | 3 Comments
  • Tue, Feb. 24, 3:59 AM
    • Republicans are increasing pressure on the FCC to delay Thursday's net neutrality vote, saying the public needs time to see and review the plan.
    • The proposal has been subject to heated battle since Chairman Tom Wheeler proposed reclassifying broadband from a lightly regulated information service to a more strictly overseen telecommunications service.
    • Supporters of the approach say that without such rules, broadband companies could charge tolls to websites for their fastest speeds, while critics say the plan would give the agency the authority to regulate pricing.
    • Related stocks: CMCSA, CVC, T, VZ, TWC, NFLX, CTL, CHTR, FTR, ELNK, DISH, DTV, CCOI
    | Tue, Feb. 24, 3:59 AM | 32 Comments
  • Fri, Feb. 20, 5:03 PM
    • Delays may be in store for two very high profile mergers -- Comcast (NASDAQ:CMCSA) with Time Warner Cable (NYSE:TWC), and AT&T (NYSE:T) with DirecTV (NASDAQ:DTV) -- as a federal court weighs a dispute over an FCC decision to provide deal opponents access to sensitive documents.
    • Content companies are arguing that letting merger opponents like Dish Network (NASDAQ:DISH) see hundreds of thousands of pages on their programming-negotiation pricing and strategies "would be highly damaging."
    • Content lawyer Robert Long says the FCC is "totally unprecedented" in providing the docs; the FCC responds that strong protections are in place and the details about buying power in programming are important in getting informed third-party input to consider approving the deals.
    • Judges reacted with skepticism toward the FCC's argument, but with no inkling of when they might rule, the timetable for the mergers may have to move later.
    • More coverage of Comcast-TWC merger
    • More on an AT&T/DirecTV deal
    | Fri, Feb. 20, 5:03 PM | 5 Comments
  • Wed, Feb. 18, 11:14 AM
    • In more details from 13Fs: John Paulson's Paulson & Co. closed its entire stake in Vodafone (NASDAQ:VOD) by Dec. 31.
    • Paulson had a stake of 26.7M shares ($927.6M at today's price), which made up 3.65% of the fund's portfolio.
    • The fund did add nearly 320K shares to its T-Mobile (NYSE:TMUS) stake.
    • Paulson also added to stakes in Time Warner Cable (NYSE:TWC), boosting that stake by 18%, and DirecTV (NASDAQ:DTV), adding 9% to that stake.
    • VOD shares are down 2.1% today, and are now up just 1.6% YTD.
    | Wed, Feb. 18, 11:14 AM | Comment!
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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