& cplSiteName &

Charter Jumps Gun on TWC Restructuring

Mari Silbey
4/26/2016
100%
0%

Although Charter is still waiting on official approval to acquire Time Warner Cable and Bright House Networks, integration plans for both MSOs are already well underway.

According to a document shared by an internal source, "New Charter" sent a communication to Time Warner Cable employees about a month ago detailing plans to shift operations from select TWC and Bright House network centers to existing Charter facilities in St. Louis, Mo. and Austin, Texas. The source reports that regional TWC executives appeared to be "blindsided" by the mass email and had little reassurance to offer existing employees beyond encouraging them to explore potential job opportunities in the new locations.

Affected Network Operations Centers (NOCs) as detailed by the mass email include Time Warner Cable Inc. (NYSE: TWC) facilities in: Charlotte, N.C.; Herndon, Va.; and Syracuse, N.Y. A Bright House Networks NOC in St. Petersburg, Fla. is also among the sites affected. The overall transition is supposed to begin six months after the two Charter acquisitions close and could take as long as 18 months to complete.

Asked about the restructuring plans, a Time Warner Cable spokesperson did not deny any details, but did suggest that communications had been smoother than the recount above implies.

In a statement provided to Light Reading, the spokesperson said: "Over the last several months, we've worked closely together on integration planning and communications. The Charter team is very respectful of TWC employees and we are pleased with the process."

A Charter Communications Inc. spokesperson expressed disbelief that any executives had been blindsided by communications about the planned merger transition, saying that "the management teams of all three companies have been working in lockstep," including the communications departments.


For more on cable market trends, join us at the Video Summit, part of our upcoming Big Communications Event in Austin, Texas, May 24-25. Register now!

Corporate mergers inevitably produce friction, and it's not unexpected to see Charter planning to close certain offices to reduce redundant operations. What's interesting to see is how much of the plans to consolidate MSO facilities appear to have been decided and widely communicated internally before regulatory approval was virtually assured.

The US Department of Justice approved the Charter deals with conditions yesterday at the same time that Federal Communications Commission (FCC) Chairman Tom Wheeler announced he is also recommending approval with conditions in place. The full Commission still has to vote on the matter, but with Wheeler's endorsement, approval by the FCC is expected. The final hurdle for Charter is likely to be overcome on May 12 when the California Public Utilities Commission hands down its regulatory decision. As with Chairman Wheeler, a state judge in California has already recommended approval with conditions. (See Wheeler Recommends Charter Deals.)

— Mari Silbey, Senior Editor, Cable/Video, Light Reading

(5)  | 
Comment  | 
Print  | 
Oldest First  |  Newest First  |  Threaded View        ADD A COMMENT
brooks7
50%
50%
brooks7,
User Rank: Light Sabre
4/26/2016 | 11:14:45 AM
I wonder if the SEC will have anything to say
 

There are limits to how an acquirer can act before a deal closes.  Integration plans are supposed to be developed, but it could be argued that this doesn't allow TWC to act as an independent company.  People will leave critical positions based on the information and the vote still needs to happen and it can fail.

seven

 
msilbey
50%
50%
msilbey,
User Rank: Blogger
4/26/2016 | 11:26:40 AM
Re: I wonder if the SEC will have anything to say
brooks7- I wonder this too, though it doesn't appear that Charter is worried about acting ahead of approval. 
mendyk
50%
50%
mendyk,
User Rank: Light Sabre
4/26/2016 | 11:47:10 AM
Re: I wonder if the SEC will have anything to say
From the outside, this looks poorly handled. I imagine it looks even worse from the inside for TWC employees. Anyone who's been involved on the short end of a corporate merger can empathize. The situation is bleaker when the acquirer is somewhat unsophisticated.
brooks7
50%
50%
brooks7,
User Rank: Light Sabre
4/26/2016 | 1:30:30 PM
Re: I wonder if the SEC will have anything to say
Mari,

The aren't exactly acting and this would be a super gray (or grey) area of the law.  The companies are supposed to act independently before the deal actually closes via the shareholder vote.   Charter hasn't given anyone an order - they have provided information to what will become (if the vote passes) new employees.  

The theoretical problem happens if the vote fails.  A number of people will have quit by the time the deal closes.  That means that it will be difficult for TWC to execute its business and make people more like to vote to merge.

The people at Charter may have considered it a kindness.  A type of early severence.  You know your job is going away and so "head's up go get a new one".  Lots of G&A people will be facing the same challenge.

seven

 
kq4ym
50%
50%
kq4ym,
User Rank: Light Sabre
5/3/2016 | 10:49:03 AM
Re: I wonder if the SEC will have anything to say
Yes, it is a bit curious that communication among the entities was not handled better. Although, it's not clear that it was as confusing as may have been reported, jumping the gun before the regulators's approval must as been embarassing after it was reported.
From The Founder
NFV's promises of automation and virtualization are intriguing, but what really excites service providers is the massive amount of money they could save.
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.
Women in Comms Introduction Videos
VMWare VP Brings Women Up With Her

8|16|17   |   6:49   |   (1) comment


It's an art and a science to make mentorship, inclusive leadership, diversity and promotion of high-potential women work, says Honore' LaBourdette, vice president of Global Market Development at VMWare.
LRTV Documentaries
5G Spectrum Wars – The Recap

8|15|17   |   2:22   |   (0) comments


Service provider 3 has filed a lawsuit against Ofcom over 5G spectrum auction in the UK.
LRTV Custom TV
Say What? Facebook Unleashes AI Anarchy – The Recap

8|7|17   |     |   (0) comments


A recap of the week's talking points on Light Reading's sister site, telecoms.com. Facebook AI programmers had a bit of a brain-fade as they allowed one of its AI applications to invent its ...
Women in Comms Introduction Videos
Fujitsu's Women Band Together to Help Girls Do STEM

8|2|17   |   9:35   |   (1) comment


Supporting women both inside and outside of Fujitsu is a top priority of the telecom vendor. Yanbing Li, Fujitsu Network Communication's director of System Software Development & Delivery, shares why it's important, but why there's still a long road ahead.
LRTV Custom TV
If You're Not First, You're Last – The Recap

7|31|17   |   08:18   |   (1) comment


In case you missed it, Amazon's 1% stock increase helped Jeff Bezos dethrone Bill Gates as the richest man in the world. Also, Taiwanese electronics manufacturer
Women in Comms Introduction Videos
AT&T's Tech President Preps Workforce for the Future

7|26|17   |   5:47   |   (10) comments


AT&T is focused on the software-defined network of the future and is reskilling its workforce to get ready too, according to AT&T's President of Technology Development Melissa Arnoldi.
Women in Comms Introduction Videos
Cisco: Mentoring Critical to Attract & Retain Women

7|19|17   |   6:40   |   (1) comment


Liz Centoni, senior vice president and general manager of Cisco's Computing System Product Group, shares why mentoring in all its forms is important for women and what Cisco is doing that's made a difference for women in tech.
LRTV Custom TV
Gigabit LTE With Snapdragon 835

7|12|17   |     |   (1) comment


At an event in Wembley stadium, EE used its live network to demonstrate gigabit LTE using a Sony Xperia XZ Premium smartphone with a Qualcomm Snapdragon 835 chip.
LRTV Custom TV
Implementing Machine Intelligence With Guavus

7|12|17   |     |   (0) comments


Guavus unites big data and machine intelligence, enabling many of the the largest service providers in the world to save money and drive measureable revenue. Learn how applying Machine Intelligence substantially reduces operational costs and in many cases can eliminate subscriber impact, meaning a better subscriber experience and higher NPS.
LRTV Custom TV
Unlocking Customer Experience Insights With Machine Intelligence

7|12|17   |     |   (0) comments


When used to analyze operational data and to drive operational decisions, machine intelligence reduces the number of tasks which require human intervention. Guavus invested in Machine Intelligence early. Learn about the difference between Machine Learning and Machine Intelligence.
Women in Comms Introduction Videos
Verizon VP Talks Network, Career Planning

7|12|17   |   4:49   |   (0) comments


Heidi Hemmer, vice president of Technology, Strategy & Planning at Verizon, shares how bold bets and the future of tech define her career.
Telecom Innovators Video Showcase
Masergy's NFV Journey

7|11|17   |     |   (0) comments


Ray Watson, vice president of global technology at Masergy, discusses the advantages and challenges in entering the still-maturing NFV market for the past three years.
Upcoming Live Events
September 28, 2017, Denver, CO
October 18, 2017, Colorado Convention Center - Denver, CO
November 1, 2017, The Royal Garden Hotel
November 1, 2017, The Montcalm Marble Arch
November 2, 2017, 8 Northumberland Avenue, London, UK
November 30, 2017, The Westin Times Square
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
Intel CEO Leaves Trump Biz Advisory Board
Dan Jones, Mobile Editor, 8/15/2017
Are Cord-Cutting's Days Numbered?
Alan Breznick, Cable/Video Practice Leader, Light Reading, 8/14/2017
Analyst Nolle: Fundamental Errors Plague NFV
Carol Wilson, Editor-at-large, 8/11/2017
Snapchat Misses Estimates, Eyes Reality Shows
Aditya Kishore, Practice Leader, Video Transformation, Telco Transformation, 8/11/2017
Verizon Video Woes Pile On
Mari Silbey, Senior Editor, Cable/Video, 8/14/2017
Like Us on Facebook
Twitter Feed
Animals with Phones
We Know a Tough Day When We See One Click Here
Live Digital Audio

Understanding the full experience of women in technology requires starting at the collegiate level (or sooner) and studying the technologies women are involved with, company cultures they're part of and personal experiences of individuals.

During this WiC radio show, we will talk with Nicole Engelbert, the director of Research & Analysis for Ovum Technology and a 23-year telecom industry veteran, about her experiences and perspectives on women in tech. Engelbert covers infrastructure, applications and industries for Ovum, but she is also involved in the research firm's higher education team and has helped colleges and universities globally leverage technology as a strategy for improving recruitment, retention and graduation performance.

She will share her unique insight into the collegiate level, where women pursuing engineering and STEM-related degrees is dwindling. Engelbert will also reveal new, original Ovum research on the topics of artificial intelligence, the Internet of Things, security and augmented reality, as well as discuss what each of those technologies might mean for women in our field. As always, we'll also leave plenty of time to answer all your questions live on the air and chat board.