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Time Warner Cable Courting Suitors for Takeover Time Warner Cable Courting Suitors for Takeover

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Tech

Time Warner Cable Courting Suitors for Takeover

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Time Warner Cable is the second-largest cable operator in the U.S.(AFP/Getty Images)

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 Cableā€”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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