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Comcast Seeking Buyout of Time Warner Cable Customers in N.Y., New England, and N.C.

Phillip Dampier January 27, 2014 Charter Spectrum, Comcast/Xfinity, Competition, Consumer News, Public Policy & Gov't, Video No Comments

Comcast-LogoComcast Corporation and Charter Communications are actively working on a deal to let Comcast acquire Time Warner Cable subscribers in New York, New England, and North Carolina, according to sources reporting to CNBC.

The split-up of Time Warner Cable is contingent on a successful takeover bid by Charter Communications, which would quickly sell the systems in the three regions to Comcast for an undisclosed sum.

CNBC reports Comcast and Charter are close to agreeing on terms, but Time Warner Cable and Charter remain far apart on the terms of Charter’s takeover bid.

Charter_logoComcast’s involvement in the deal could inject much-needed cash into a takeover bid financed largely by debt. It might also prompt Charter to sweeten its offer for TWC.

Comcast’s interest in the northeast and mid-Atlantic region is not surprising. The cable company already has a large presence in eastern Massachusetts, New Jersey, Maryland, D.C., and Virginia. Time Warner Cable is the dominant cable company in New York, western and northern New England, and North Carolina.

Charter would likely keep Time Warner Cable’s operations in Texas, California, the midwest and south for itself if it succeeds in a takeover.

Charter has reportedly has hired Innisfree M&A, a proxy solicitor, to prepare for a possible proxy fight with Time Warner. Innisfree specializes in convincing shareholders to agree to proposed mergers and acquisitions.

Liberty Media, which has a substantial ownership interest in Charter Communications, is also appealing directly to Time Warner Cable stockholders and is planning to run its own slate of candidates for Time Warner Cable’s board of directors. Should Liberty-nominated candidates attract a majority of votes at the annual shareholder meeting in May, the new board members are expected to quickly approve a sale of the cable company.

Comcast Corp. is near a deal to buy New York, North Carolina and New England cable assets from Charter Communications, Inc. if shareholders approve Charter’s takeover bid for Time Warner Cable Inc., people with knowledge of the matter said. Alex Sherman reports on Bloomberg Television’s “Money Moves.” (3:28)

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  • JayS: They will upgrade 47,000 customers for $ 20,000,000; 20,000,000/47,000 = $426/per customer. That is per customer, not per premises passing (custom...
  • Lee: Phone line dead 4 times in last 2 months. Third time tech said was cut at neighbors yard pedestal. Fourth time this Sunday I went to neighbors to chec...
  • Me: well well well..cutting all their services..getting antenna..all else is on my cell...
  • Matthew H Mosher: Sure, but it's pretty easy to crap on NY when my wife a d I pays these ridiculous tax rates so that MY KIDS can't get broadband. Meanwhile it runs fib...
  • Lee: It would be interesting to see the age cohort distribution of stock owners this analyst champions. I suspect the majority are not in the 20 to 30 rang...
  • Josh: Ugh. If I used Comcast for TV I'd be using it with my TiVo...never with their box. And I always figured the "Xfinity" thing was just to trick people...
  • Josh: LOL! Sounds like basically "we're a huge corporation, so you should do this for us for free". At least hopefully they'll pay now... Of course this ...
  • goonierag: I am sick of wallstreet the cable companies and telco's gouging the people and of here this s**t from their fans. The internet was developed by the ...
  • FredH: Like cable company CEOs need to be told to raise prices by some a-hole Wall Street analyst....
  • Roger W: Go ahead. Raise it to $90. I dare you. I guarantee you it will be the last day I subscribe to cable service. That'll be your loss....
  • FredH: Charter/Spectrum is rapidly catching Comcast in the "race to the bottom"....
  • Phillip Dampier: Yeah, because Charter is hurting so much it cannot afford to extend service itself so it wants welfare to do it. Keep in mind most techs have no clue...

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