In the last week, executives from both Charter Communications and Time Warner Cable have talked to the Newhouse Family, controlling owner of Bright House Networks, about an acquisition of the cable company.

Time Warner may hold the stronger hand. In addition to being a much-larger and wealthier cable company, Time Warner has the advantage of a long-standing partnership dating back to the early 90’s with Bright House in which Time Warner shares its volume discounts on cable programming and technology with Bright House in return for an annual fee. As part of that arrangement, Time Warner has the right of first offer if Bright House ever chose to sell. If Time Warner matches or beats a competing offer, such as that now on the table from Charter Communications, it wins Bright House for itself.

Bright House decided it had to sell to someone after the Comcast-Time Warner Cable merger threatened to end its arrangement with Time Warner. Bright House would pay substantially more for programming and equipment without the volume discounts Time Warner received. With the Comcast deal off the table, Time Warner remains an acquisition target.

Bright House is coveted by Charter as a stepping stone to a much larger acquisition of Time Warner Cable. Charter’s balance sheet is loaded with debt and its stock isn’t worth as much as that of Time Warner Cable. Combining Bright House’s two-million subscribers with Charter’s own five million customers strengthens Charter’s balance sheet and increases its borrowing capacity as it prepares to acquire Time Warner Cable for a second time.

Time Warner Cable’s interest in Bright House would make life more difficult for Charter, preventing the company from leveraging a quick deal for Time Warner. It also would make Time Warner Cable considerably more expensive (and complex) to acquire. In January 2014, Charter offered $132.50 a share to Time Warner Cable shareholders to acquire the cable company. Time Warner Cable executives immediately recommended shareholders reject the deal as undervalued. Today Time Warner stock is worth around $156 a share, meaning Charter would have to offer at least $160 a share, and probably more than that, to interest Time Warner executives.

The Newhouse family is sitting in a lucrative position as it is courted by the two larger cable operators. One of those familiar with the talks suggested Time Warner was offering the Newhouse family influence in a combined Bright House-Time Warner Cable, because its offer would leave the Newhouse family as the largest individual shareholder of the combined company. Charter’s offer would hand power to John Malone’s Liberty Broadband, and leave the Newhouse family with little, if any voice.

Based on that, the Newhouse family may gravitate towards Time Warner Cable unless Charter significantly sweetens its deal and Time Warner drops out. With the Comcast-Time Warner Cable merger in tatters, both sides have a 30-day “good faith” period to renegotiate and tweak their respective offers.

Despite all that, Bright House may decide not to sell after all, at least until after the bigger players settle their own deals and acquisitions. In that case, Charter may have other targets in mind. At the top of the list are Mediacom and Suddenlink.