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Bidding War for TWC Looks Likelier

Alan Breznick
5/22/2015

It increasingly looks like there could be one heck of a bidding war for Time Warner Cable.

In the latest chapter in the long-running saga about Time Warner Cable Inc. (NYSE: TWC)'s future, the Wall Street Journal reported Thursday night that Patrick Drahi, the French billionaire who heads Altice , met in New York earlier this week with TWC Chairman and CEO Rob Marcus.

The Journal story says the two top executives discussed a potential pact between Altice and Time Warner Cable as Altice, which just struck a $9.1 billion deal to buy a controlling stake in Suddenlink Communications , moves to play a major role in the US cable market. (See Altice to Buy Suddenlink in $9.1B Deal, What's It All About, Altice? and Is Altice the Great US Cable Consolidator?)

Drahi's reported meeting with Marcus comes as Charter Communications Inc. continues to woo Time Warner Cable as well, following last month's collapse of Comcast Corp. (Nasdaq: CMCSA, CMCSK)'s $45.2 billion agreement to buy out TWC. With Time Warner Cable reporting strong subscriber growth and improved financial metrics in the past two quarters, analysts were already expecting Charter to up the ante for TWC. Now that Altice is in the picture, TWC's selling price is likely to shoot even higher.


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Alarmed by the Federal Communications Commission (FCC) 's opposition to the Comcast-TWC deal, Marcus and other top MSO executives have expressed concern that the Commission might look to block other big cable deals as well. In an effort to ease those concerns, FCC Chairman Tom Wheeler reportedly called Marcus, Charter CEO Tom Rutledge and other top US cable executives this week to assure them that the Commission won't necessarily oppose any and all future cable deals. The Journal says Wheeler, without getting into specifics, told the execs that the FCC would weigh each prospective deal on its own merits.

In addition, Wheeler reportedly reiterated his call for cable operators to expand beyond their current territories and overbuild each other to stoke more video and broadband competition in the US market. The FCC chairman delivered a similar message in his keynote address at the cable industry's Internet & Television Expo (INTX) in Chicago two weeks ago. (See Wheeler to Cable: Suck It Up.)

— Alan Breznick, Cable/Video Practice Leader, Light Reading

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Joe Stanganelli
Joe Stanganelli
5/28/2015 | 10:50:00 PM
Re: Good day
@Mitch: That's right...keep making me feel bad.  :P
Joe Stanganelli
Joe Stanganelli
5/28/2015 | 10:49:39 PM
Re: A Brief "newsflash":: Charter is "sharpening" its' Knives...
@mhh: That's a good point.

Still, the DOJ, FTC, FCC, and all the other alphabet-soup agencies love to have their crack at deep-pocketed big businesses whenever they get the chance.
mhhf1ve
mhhf1ve
5/26/2015 | 9:30:12 PM
Re: A Brief "newsflash":: Charter is "sharpening" its' Knives...
I don't think Charter is going to run into the same problems as Comcast did with this TWC buy. The New Charter will still be #2 in size after Comcast, and it doesn't own any major media properties like Comcast does (NBC).
Mitch Wagner
Mitch Wagner
5/26/2015 | 5:53:35 PM
Re: Good day
Today is an even better day to be a TWC investor. :)
MikeP688
MikeP688
5/25/2015 | 10:12:27 PM
Re: A Brief "newsflash":: Charter is "sharpening" its' Knives...
@Joe:  I am sure you agree that John Malone is no "push over" and has probably thought this through in a major way--but we have yet to hear from the the French John Malone--it should be fun to be witness to :-) 
MikeP688
MikeP688
5/25/2015 | 10:10:49 PM
Re: Good day (Beyond the Hype)
@Joe:  They are asking to be allowed into China--and if they're able to pull it off, I think you're lookin gat least a $ 1000 Stock easy.     
Joe Stanganelli
Joe Stanganelli
5/25/2015 | 9:34:57 PM
Re: A Brief "newsflash":: Charter is "sharpening" its' Knives...
@MikeP: Of course, look for Charter to face similar regulatory/antitrust issues as Comcast did -- and whether or not Charter is willing to pony up to put up with those issues.
Joe Stanganelli
Joe Stanganelli
5/25/2015 | 9:33:48 PM
Re: Good day (Beyond the Hype)
@MikeP: Why?  What are they trying to do in China?
MikeP688
MikeP688
5/25/2015 | 3:43:07 PM
A "thought' For the day To Share w/all
As we await the latest From Charter I wanted to note this from the "land down under".   Can what Foxtel in Australia is dealing  with a precusor of truly what is before our esteemed Cable Suppliers?  Yes we've deliberated the trends--but this is quite stunning:  

http://www.smh.com.au/digital-life/computers/gadgets-on-the-go/how-many-foxtel-customers-will-defect-to-netflix-20150525-gh8u9h.html 
MikeP688
MikeP688
5/25/2015 | 1:19:02 PM
A Brief "newsflash":: Charter is "sharpening" its' Knives...
..as I just saw the New York Times reporting that Charter wants to buy TWC for $ 55 BIllion.  Never a dull moment--is there? 

 
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