& cplSiteName &

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        ADD A COMMENT
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   >   >>
Educational Resources
sponsor supplied content
Educational Resources Archive
From The Founder
Cisco's Conrad Clemson, recently promoted to head up the company's Service Provider Apps & Platforms developments, talks to Light Reading's Founder and CEO Steve Saunders about how he's bringing cloud video, mobile and virtualization together to empower network operators.
Flash Poll
Live Streaming Video
Charting the CSP's Future
Six different communications service providers join to debate their visions of the future CSP, following a landmark presentation from AT&T on its massive virtualization efforts and a look back on where the telecom industry has been and where it's going from two industry veterans.
LRTV Custom TV
CommScope – Meeting the Demands of Tomorrow's Networks

3|24|17   |     |   (0) comments


Phil Sorksy, Vice President International at CommScope, discusses addressing the challenges faced by service providers today, and as future trends emerge.
LRTV Huawei Video Resource Center
AMS-IX & Huawei's OSN 902

3|24|17   |     |   (0) comments


Huawei shows how its OSN 902 platform helps the Amsterdam Internet exchange to connect the world using multiplexing.
LRTV Huawei Video Resource Center
Huawei's Smart Energy Innovation Center

3|24|17   |     |   (0) comments


In Nuremberg, Huawei showcases its latest capabilities in the digitalization of Internet resources, network infrastructure and intelligence at its Smart Energy Innovation Center.
Valley Wonk
OFC & Hyperscale: A Good Mix?

3|24|17   |   01:50   |   (0) comments


Cloud and telecom players want different types of equipment for their networks, as the chatter at OFC reveals.
LRTV Custom TV
Etisalat on NFV Journey

3|24|17   |   10:37   |   (0) comments


Etisalat is a service provider that prides itself on bringing innovative technologies to the markets it serves. It was one of the first operators to implement 3G and leads the pack in fiber penetration. Now, Esmaeel Al Hammadi, Etisalat's SVP of Network Development, explains the operator's journey to virtualization, beginning with the network core, as well as the ...
LRTV Huawei Video Resource Center
Huawei at CeBIT 2017: Day 3

3|22|17   |     |   (0) comments


Light Reading reports from CeBIT 2017 in Germany, where Huawei is exhibiting on the application of technologies and key business verticals such as transportation, smart city, manufacturing, media and finance.
LRTV Documentaries
No Regrets: Cox's Finkelstein on Fiber & More

3|22|17   |     |   (0) comments


At the Cable Next-Gen Technologies & Strategies event in Denver, Cox's Jeff Finkelstein examines the cable capex conundrum.
LRTV Documentaries
Cable Next-Gen: The 'Mile High' View From Denver

3|22|17   |   11:56   |   (0) comments


Alan Breznick kicks off the Cable Next-Gen Technologies & Strategies event in Denver, casting his thousand-yard stare over cable's current competitive landscape.
LRTV Huawei Video Resource Center
Huawei at CeBIT 2017: Day 2

3|21|17   |   2:27   |   (0) comments


Light Reading reports from CeBIT 2017 in Germany, where Huawei is exhibiting digital transformation solutions around IoT, smart data centers, OpenCloud ecosystem and its newly announced storage-as-a-service solution.
LRTV Custom TV
Driving Better Mobile Customer Experience While Transforming the Mobile Network

3|21|17   |   7:47   |   (0) comments


The Citrix NetScaler mobile gateway is an intelligent traffic management solution which can markedly improve the customer experience provided by mobile operators, even when traffic is encrypted. Critical network services can be consolidated and virtualized using NetScaler. Because of the unique architecture, NetScaler can be deployed on any hypervisor, on a ...
LRTV Custom TV
Mastercard: What's Next for Mobile Payments?

3|21|17   |   7:49   |   (0) comments


2017 marks the fifth consecutive year for Mastercard at Mobile World Congress and it was a great time to reflect on the amazing advances the payments industry has made as well as discuss "What's Next' in the digital commerce future. We spoke to James Anderson, executive vice president of digital payments at MasterCard, about digital wallets to tokenization to ...
LRTV Custom TV
Mastercard: 2 Billion Adults 'Trapped' in Cash Economy

3|21|17   |   03:51   |   (1) comment


Despite advances made in the last several years, two billion adults around the world are trapped in a cash economy and lack what we take for granted -- a safe way to receive, save and use money. Shamina Singh, executive vice president of sustainability and president of the Mastercard Center for Inclusive Growth, chats about how Mastercard is developing new ways to ...
Upcoming Live Events
May 15-17, 2017, Austin Convention Center, Austin, TX
May 15, 2017, Austin Convention Center - Austin, TX
June 6, 2017, The Joule Hotel, Dallas, TX
All Upcoming Live Events
Infographics
With the mobile ecosystem becoming increasingly vulnerable to security threats, AdaptiveMobile has laid out some of the key considerations for the wireless community.
Hot Topics
High-Band 5G: Let's Address the Range Question, Shall We?
Dan Jones, Mobile Editor, 3/21/2017
Eurobites: A1, Nokia Turn It Up to 11
Paul Rainford, Assistant Editor, Europe, 3/22/2017
FTTH No Slam Dunk for Cable
Carol Wilson, Editor-at-large, 3/23/2017
Top Priorities for B/OSS Transformation
James Crawshaw, Senior Analyst – OSS/BSS Transformation, Heavy Reading, 3/20/2017
Like Us on Facebook
Twitter Feed
BETWEEN THE CEOs - Executive Interviews
TEOCO Founder and CEO Atul Jain talks to Light Reading Founder and CEO Steve Saunders about the challenges around cost control and service monetization in the mobile and IoT sectors.
At MWC 2017, Qualcomm's CTO Matt Grob talks to Light Reading's CEO and Founder Steve Saunders about the progress being made in the development of the technologies and standards that will underpin 5G.
Animals with Phones
Neither Do We Click Here
Is that a prerequisite?
Live Digital Audio

Playing it safe can only get you so far. Sometimes the biggest bets have the biggest payouts, and that is true in your career as well. For this radio show, Caroline Chan, general manager of the 5G Infrastructure Division of the Network Platform Group at Intel, will share her own personal story of how she successfully took big bets to build a successful career, as well as offer advice on how you can do the same. We’ll cover everything from how to overcome fear and manage risk, how to be prepared for where technology is going in the future and how to structure your career in a way to ensure you keep progressing. Chan, a seasoned telecom veteran and effective risk taker herself, will also leave plenty of time to answer all your questions live on the air.