Time Warner Cable Courting Suitors for Takeover

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This 24 November, 2003 files image shows Pedestrians and vehicles in front Time Warner headquarters in New York. Media giants Time Warner and Comcast announced plans 21 April, 2005 to jointly buy bankrupt cable group Adelphia Communications Corp. in a 17.6-billion USD deal, including 12.7 billion in cash. A statement from the firms said Time Warner would pay 9.2 billion USD and 16 percent of the shares of its Time Warner Cable unit. Comcast would contribute 3.5 billion USD in cash.
National Journal
Laura Ryan
Nov. 25, 2013, 8:47 a.m.

The No. 1 cable com­pany is re­portedly con­sid­er­ing pur­chas­ing the No. 2 cable com­pany in a mer­ger that would res­ult in in­tense an­ti­trust scru­tiny from the Justice De­part­ment and the Fed­er­al Com­mu­nic­a­tions Com­mis­sion.

Bloomberg re­ports that people fa­mil­i­ar with the mat­ter said that Com­cast has had pre­lim­in­ary talks with Charter Com­mu­nic­a­tions to make a joint bid for Time Warner Cable — a move that could be a win-win for the three com­pan­ies.

Split­ting up TWC, the second-largest cable op­er­a­tion be­hind Com­cast, would re­duce the chance of an­ti­trust reg­u­lat­ory hurdles get­ting in the way as well as the amount of cash Charter would need to raise to make the pur­chase.

News about a joint bid comes after re­ports last week that Com­cast and Charter were com­pet­ing for TWC. Ac­cord­ing to the Los Angeles Times, TWC ap­proached Com­cast about a pos­sible mer­ger in or­der to avoid a takeover at­tempt by Charter Com­mu­nic­a­tions.

Charter Com­mu­nic­a­tion’s bid on TWC is spear­headed by John C. Malone, the chair­man of Liberty Me­dia who was once known as the “king of cable,” who ac­quired 27 per­cent of Charter Com­mu­nic­a­tions in May. 

Ac­cord­ing to Bloomberg, the cable in­dustry is trend­ing to­ward con­sol­id­a­tion in or­der to gain an up­per hand in ne­go­ti­ations with ma­jor net­works, such as CBS.

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