360° Coverage : Comcast Looks Set To Buy Time Warner Cable

2 Updates

Comcast Looks Set To Buy Time Warner Cable

Feb 13 2014, 3:02am CST | by

There are reports that Comcast, the nation’s largest cable company, is about to get even bigger. According to the New York Times, the Philadelphia-based cable company is making a bid for Time Warner...

Filed under: news

 
 
 

28 weeks ago

Comcast Looks Set To Buy Time Warner Cable

Feb 13 2014, 3:02am CST | by

There are reports that Comcast, the nation’s largest cable company, is about to get even bigger. According to the New York Times, the Philadelphia-based cable company is making a bid for Time Warner Cable. The deal would be worth $45 billion in stock.

Time Warner has been under pressure for almost a year as Charter Cable and John Malone’s Liberty have been pushing for a hostile take over of the company. Time Warner, which has about 11 million customers, has seen its share of customers leaving. According to the latest public filings, residential video subscribers were down 6% as of September last year.

It didn’t help that subscribers suffered through a month-long blackout of CBS this summer when the two sides were unable to agree on a price Time Warner would have to pay CBS for the right to show its programming. The deal was finally consummated just before football season started.

The Comcast deal reportedly offers $160 per share. TWC is currently trading at $135 per share. Charter had been trying to buy the company at $132.50 per share according to the New York Times.

The combined Comcast Time Warner would be the biggest cable company in America which is sure to bring down scrutiny from Washington. While the merger wouldn’t eliminate competition in any given market (only one cable company can control a market at a time) it will give Comcast incredible bargaining power when it come to things like negotiating retransmission deals with CBS.

Comcast is also a huge owner of content. The $144 billion (market cap) company owns NBC, Universal and cable networks like E!, USA and Bravo. It would be no surprise if regulators felt uncomfortable about a company that big now being the sole cable provider to 30 million Americans.

Of course Comcast will likely argue that anyone can chose to go with a satellite provider instead of cable or cut the cord all together. Because of the increased competition cable faces today, Comcast could benefit from operational efficiency by combining the two companies. By making a lot of workers redundant, the company could cut costs.

Eventually, Comcast could become just a giant pipe into people’s homes that offers content mostly through the Internet through virtual video providers. According to a recent report by BTIG’s Richard Greenfield (subscription required):

While we believe overall multichannel video subscription homes is in secular decline (at approximately 100 million today), we believe cable should be able to leverage its broadband prowess to reverse market share losses. We also see the power of the broadband pipe into the home enabling the industry to sell an increasing array of additional services.

While Time Warner management didn’t seem thrilled by the Charter overture because the price was too low, the company seems willing to sell. Comcast will likely have to agree to get ride of some of its customers which could work to Charter’s advantage as there aren’t that many cable companies left any more to pick up the slack.

What do you think about a combined Comcast Time Warner cable giant?

Source: Forbes Business

 
Update
2

3 days ago

Khazanah throws MAS RM6b lifeline

Aug 29 2014 5:01pm CDT | Source: Business Times Singapore

August 30, 2014 1:15 AMKHAZANAH Nasional will inject RM6 billion (SS$2.4 billion) over three years to resuscitate loss-making Malaysia Airlines (MAS) under a recovery plan that includes even an Act of Parliament. Other key moves are migrating its operations, assets and liabilities to a new company (NewCo) and slashing the workf ...
Source: Business Times Singapore   Full article at: Business Times Singapore
 

 
Update
1

4 days ago

MAS posts loss of RM307m for Q2

Aug 28 2014 5:00pm CDT | Source: Business Times Singapore

August 29, 2014 1:13 AMMALAYSIA Airlines (MAS) registered a loss of RM307 million (S$122 million) for the second quarter to end-June, but warned of worse to come in the second half when the "full financial impact of the double tragedies of MH370 ...
Source: Business Times Singapore   Full article at: Business Times Singapore
 

 

Don't miss ...

 

<a href="/latest_stories/all/all/30" rel="author">Forbes</a>
Forbes is among the most trusted resources for the world's business and investment leaders, providing them the uncompromising commentary, concise analysis, relevant tools and real-time reporting they need to succeed at work, profit from investing and have fun with the rewards of winning.

 

blog comments powered by Disqus

Latest stories

Experiential purchases more satisfying than material ones
New York, Sep 2 (IANS) Spending money doing things or buying experiences makes people feel a lot more happier than spending money on material things, a study says.
 
 
Eat fruits daily for healthy heart
London, Sep 2 (IANS) Daily fruit consumption cuts the overall risk of death by 32 percent and cardio-vascular diseases (CVDs) by up to 40 percent, a study shows.
 
 
NASA building traffic control system for drones
New York, Sep 2 (IANS) NASA is developing a drone traffic management programme that would work as a separate air traffic control system for drones flying low to the ground at 400 to 500 feet.
 
 
App that enhances smartphone battery life
New York, Sep 2 (IANS) Are you frustrated by the limited battery life of your smartphone? No need to fret any longer as a US professor has created a free app called Estar that reveals how certain apps drain a smartphone battery faster.
 
 
 

Latest from the Network

Eight policemen killed in Egypt explosion
Cairo, Sep 2 (IANS) At least eight policemen were killed and four injured Tuesday in an explosion in Egypt's Sinai region, a security official said. The blast occurred when a police vehicle went over a planted...
Read more on Politics Balla
 
Coach Orenga content with Spain's basketball World Cup performance
Madrid, Sep 2 (IANS) Spanish basketball coach Juan Antonio Orenga said he was happy with his team's performance in the FIBA World Cup till date and was all praise for veteran Pau Gasol, who has been a star for the team...
Read more on Sport Balla
 
Hateful content on Facebook bad for your brain
London, Sep 2 (IANS) Are you exposed to reading homophobic, racist, misogynistic or other hateful content on Facebook? It may have a harmful effect on your brain in the long run. According to a recent Italian study,...
Read more on Celebrity Balla
 
Two policemen killed in Afghan suicide attack
Kabul, Sep 2 (IANS) At least two policemen were killed and two others injured Tuesday in a suicide car bomb attack in Afghanistan's Nangarhar province, an official said. "The attack took place in Ghani Khil district...
Read more on Politics Balla
 
Rihanna pays £6k for nail technician
Rihanna has paid £6,000 for a manicure. The 'Rude Boy' singer, who is currently enjoying some time off from her busy schedule on her luxury yacht in the Mediterranean, flew out A-list nail technician Jenny Longworth to...
Read more on Celebrity Balla
 
Kelly Brook: Simon Cowell thought I was a singer
Kelly Brook says Simon Cowell didn't know who she was when she was asked to appear on 'Britain's Got Talent'. The 34-year-old beauty starred as judge on the show in 2009, before she was unceremoniously dumped by the '...
Read more on Celebrity Balla
 
Cee Lo Green tweets controversial rape views
Cee Lo Green has deleted his Twitter account after allegedly tweeting some controversial views on rape. According to an article on BuzzFeed, the 39-year-old singer posted several comments about the subject on his...
Read more on Celebrity Balla
 
Ariana Grande hits out at nude photo leak
Ariana Grande insists reported nude pictures of her are fake - because her bottom is ''a lot cuter'' in real life. The 'Problem' hitmaker took to her Twitter account this morning (02.09.14) to address rumors that a...
Read more on Celebrity Balla
 
Ryan Fletcher opens up about Ashley Roberts romance
Lawson's Ryan Fletcher has opened up about his romance with Ashley Roberts. The bassist has confirmed that he's dating the former Pussycat Dolls singer - who was previously romantically linked with TV presenter Declan...
Read more on Celebrity Balla
 
Kanye West avoided dress disaster before wedding
Kanye West avoided a bridesmaid disaster before his wedding to Kim Kardashian. The rapper became a hero before he had even tied the knot with the brunette beauty at their May nuptials when he stepped in at the last...
Read more on Celebrity Balla