Light Reading
Comcast trumps Charter with a takeover deal.

Comcast Strikes $45B Deal for TWC

Ray Le Maistre
2/13/2014
50%
50%

Comcast has trumped Charter by striking a $45 billion deal to acquire Time Warner Cable Inc. (NYSE: TWC). (See Comcast to Buy Time Warner Cable for $45.2B .)

Charter Communications Inc. has been courting TWC for months and in January made a cash and stock bid worth $132.50 for each TWC share in January, which was rejected.

And just days ago, Charter even unveiled how it would reshape the TWC board if it was eventually successful in its takeover bid. (See Charter Seeks to Replace TWC Board .)

Now, Comcast Corp. (Nasdaq: CMCSA, CMCSK) has stepped up with an all-stock bid that values each TWC share at $158.82, an offer that has been accepted.

The consensus appears to be that Charter would not have the financial muscle to make a better offer.

Comcast seems confident its deal wouldn't fall foul of anti-competition rules as its service areas don't overlap with those of TWC. Such a deal would, though, leave Comcast way ahead of the field as the number one player in the US cable services market, and leave Charter wondering what to do next.

Expect to hear more about this game-changing M&A move during Thursday.

— Ray Le Maistre, Editor-in-Chief, Light Reading

(23)  | 
Comment  | 
Print  | 
Newest First  |  Oldest First  |  Threaded View
Page 1 / 3   >   >>
kq4ym
50%
50%
kq4ym,
User Rank: Light Sabre
2/13/2014 | 9:30:24 PM
Re: The Litmus Test
While the consumer may not feel the effects immediately, it's not going to be smooth sailing for those who will be left with no competitive services to choose from. Whether the government will decide in favor of the deal is another matter. But, recent approvals seems to indicate there may be no objection. It will be history that decides the wisdom of large companies taking what actually amounts to a monopoly interest.
dwx
50%
50%
dwx,
User Rank: Light Sabre
2/13/2014 | 3:57:17 PM
Re: The Litmus Test
TWC and Comcast were two of the most staunch opponents to giving OTT providers free access to their networks, so in those regards not much changes.   They just have a bigger bargaining chip with more customers, and I agree it's the content owners who are going to make the most noise over this.  

I'm curious if Comcast plans on keeping ahold of the entire TW footprint or selling off portions to other MSOs who have adjacent footprints.  

Comcast is ahead of the game when it comes to true IP video.  I think it's a win for TWC subscribers if they will have access to Comcast's newer video products, well at least those looking for more cutting edge products.  Most are like my parents and just want their TV to work without much hassle. :) 
mendyk
50%
50%
mendyk,
User Rank: Light Sabre
2/13/2014 | 1:10:30 PM
Re: The Litmus Test
The Rule of 3 (as in the number of mobile operators a market can support) has proven out time and again in lots of national markets. So one way or the other, past performance indicates that if T-Mobile and Sprint don't come together, one of them will fall away or at least fade into Tier 3 status (as in, "Our customer base is now made up entirely of people who read The Nation"). Pro-competition fans don't like that but it's just the way things have worked and most likely will continue to work. Our regulators seem to be completely oblivious to this established reality.
brookseven
50%
50%
brookseven,
User Rank: Light Sabre
2/13/2014 | 12:53:27 PM
Re: The Litmus Test
Dennis,

I agree with your point here, which is essentially that the consumer landscape does not directly change.

What I think does change are the eco-systems around this which folks have been directly commenting on.  

The wireless merger is backwards and my big concern with NOT doing it is do T-Mobile/Sprint survive separately?  I love the notion of a 4 player field, but a 3 player field with long term survivability seems better to me.

Back to the eco-system thing, I think shareholders will win in the long term since this is essentially a land grab.  There will be short to medium term losses but essentially we will scrap 1 G&A department, some executives, and get a better deal on purchasing in NewCo.  I think that the notion of the single largest ISP by quite a long way is troubling.

seven

 
mendyk
50%
50%
mendyk,
User Rank: Light Sabre
2/13/2014 | 11:45:01 AM
Re: The Litmus Test
On the positive side, this can only help to accelerate the move to OTT.
mendyk
50%
50%
mendyk,
User Rank: Light Sabre
2/13/2014 | 11:42:16 AM
Re: The Litmus Test
Yes, that's what economies of scale is all about. In reality, merged companies have a very hard time actually getting to the point where their efficiency plans come to fruition. And we are in an economic environment that cares not one whit about individual job security, merger or no merger. I'll go back to the original point -- single ownership of properties that already are de facto monopolies (as in, there's little or no on-the-ground competition between cable operators) won't have much of an impact on the video/broadband market.
Phil_Britt
50%
50%
Phil_Britt,
User Rank: Light Sabre
2/13/2014 | 11:41:11 AM
Re: The Litmus Test
A financial analyst pointed out that the biggest complaints may not come from consumers or from other cable/satellite providers, but instead from content providers like CBS and Disney. With Comcast/NBC/Time Warner all together, it would be the behemoth in content and have the majority of the distribution capability as well.
craigleddy
50%
50%
craigleddy,
User Rank: Blogger
2/13/2014 | 11:35:03 AM
Re: The Litmus Test
Oh, I thought I was being polite by saying "nonsense" and not something harsher. :) I guess I've witnessed too many merger announcements containing false promises.

Comcast and TWC are indeed both pursuing this centralization strategy, but the merger could take it to an even larger scale with potential impact on more employees, unless that non-overlap promise is put in stone.

 
mendyk
50%
50%
mendyk,
User Rank: Light Sabre
2/13/2014 | 11:24:28 AM
Re: The Litmus Test
Are you saying that they wouldn't do this without the merger? I'm not sure where the nonsense crack comes from -- seems a bit harsh.
craigleddy
50%
50%
craigleddy,
User Rank: Blogger
2/13/2014 | 11:19:11 AM
Re: The Litmus Test
Au contraire on the point about employees and consumers.

The notion that Comcast and TWC properties will be operated separately without overlap is nonsense (unless their non-overlap promises are codified by regulators). One of the key strategies of Comcast (and TWC) in embracing IP-based distribution is to centralize operations in as few locations as possible, essentially around content delivery networks (CDNs) and regional data hubs. Carried out on a larger national scale this significantly reduces the need for local operations and employees.

The IP strategy also poses enormous operational challenges (billing, customer service, provisioning etc) which, if done on an even larger scale and not executed properly, will rain down on customers' heads. (Not to mention that the easiest way for a large broadband provider to increase revenue is through rate increases.) Comcast's IP vision is brilliant but the company still has issues with execution, as far too many Comcast customers know.    
Page 1 / 3   >   >>
Flash Poll
From The Founder
It's clear to me that the communications industry is divided into two types of people, and only one is living in the real world.
LRTV Huawei Video Resource Center
2014 Huawei Electric Power Industry Summit: Interview With CEO of SwitchCom

10|30|14   |   4:13   |   (0) comments


SwitchCom, an IT company based in Angola, recommends a variety of Huawei solutions and hardware to their customers in the energy industry.
LRTV Huawei Video Resource Center
2014 Huawei Electric Power Industry Summit: Interview With Ethiopia's Ministry of Water Irrigation & Energy

10|30|14   |   4:08   |   (0) comments


Gosaye Mengistie of Ethiopia's Ministry of Water Irrigation & Energy discusses the collaboration with Huawei in that country.
LRTV Huawei Video Resource Center
2014 Huawei Electric Power Industry Summit: Interview with Dongfang Electronics Corporation

10|30|14   |   5:46   |   (0) comments


Dongfang Electronics Corporation, headquartered in Chengdu, China, is one of China's largest manufacturers of power generators and contractors of power station projects.
LRTV Huawei Video Resource Center
2014 Huawei Electric Power Industry Summit: Interview with Zimbabwe's Customers

10|30|14   |   3:31   |   (0) comments


Representatives of Zimbabwe's Ministry of Power and Development discuss the energy needs of their country as well as new areas of improvement due to enhanced ICT capabilities.
LRTV Huawei Video Resource Center
2014 Huawei Electric Power Industry Summit: Interview With Colbún Chile

10|30|14   |   4:29   |   (0) comments


In Chile, an aging energy infrastructure was in dire need of a modern update. Claudio Valenzuela of Colbún discusses how Huawei's ICT solutions continue to provide crucial information to improve the grid and how an in-country engineer is a cricial asset.
LRTV Huawei Video Resource Center
2014 Huawei Electric Power Industry Summit: Interview With YuLiao

10|30|14   |   6:27   |   (0) comments


Yu Liao, chairman of the Chinese Association for Renewable Energy in Germany, discusses the role that ICT solutions play in helping to grow renewable energy resources in Germany.
LRTV Huawei Video Resource Center
2014 Huawei Electric Power Industry Summit: Interview

10|30|14   |   2:54   |   (0) comments


Sifang has been working with Huawei on several projects. JingTao Wu, Assistant President of Beijing Sifang Automation Co. Ltd., believes that the cooperation with Huawei can facilitate Sifang's process of internationalization.
LRTV Huawei Video Resource Center
A Better Connected Smart Grid: Powering Laos

10|30|14   |   5:38   |   (0) comments


Representatives of Electricite Du Laos (EDL), a state-owned corporation, discuss the importance of ICT solutions in serving their country's energy needs.
LRTV Huawei Video Resource Center
2014 Huawei Electric Power Industry Summit: Interview With Junwei Lu

10|30|14   |   4:50   |   (0) comments


Professor Junwei Lu of Griffith University Australia describes his work with micro grid technology and the future of the power industry.
LRTV Documentaries
The Next-Gen Network Disconnect

10|29|14   |   01:23   |   (0) comments


There's a lot of talk about making networks more simple with SDN, NFV and next-gen broadband technology – but what about the complexity of introducing such capabilities?
LRTV Custom TV
Grow Your VPN Service Revenue

10|27|14   |   4:00   |   (0) comments


Watch how CSP product managers can better differentiate and maximize the value of their Internet, VPN and cloud services for business services customers, by adding premium application performance visibility to their data services.
LRTV Huawei Video Resource Center
Add SmartSense to Make Your Network Ready for 4K

10|27|14   |   3:23   |   (0) comments


To make current networks ready for the coming 4K TV challenges, Huawei SmartSense solution will conveniently add experience and operation capabilities to boost telcos' future business.
Upcoming Live Events
November 6, 2014, Santa Clara
November 11, 2014, Atlanta, GA
December 2, 2014, New York City
December 3, 2014, New York City
December 9-10, 2014, Reykjavik, Iceland
February 10, 2015, Atlanta, GA
May 6, 2015, McCormick Convention Center, Chicago, IL
May 30, 2015, The Westin Peachtree, Atlanta, GA
June 9-10, 2015, Chicago, IL
Infographics
WhoIsHostingThis.com presents six of the world's most extreme WiFi hotspots, enabling the most epic selfies you can imagine.
Hot Topics
Microsoft's Skype Embraces WebRTC on IE
Sarah Reedy, Senior Editor, 10/27/2014
FTC Slaps AT&T With Throttling Lawsuit
Sarah Reedy, Senior Editor, 10/28/2014
China's MVNOs Hit the Wall
Robert Clark, 10/27/2014
Let's Not Kill SDN & NFV With Silos
Francois Locoh-Donou, Senior VP, Global Products Group, Ciena, 10/28/2014
Wheeler Gets Down With OTT
Mari Silbey, Independent Technology Editor, 10/29/2014
Like Us on Facebook
Twitter Feed