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November 22, 2013

Time Warner Cable is a possible takeover target

Comcast is reportedly weighing a bid for Time Warner Cable, a deal that would unify the largest cable providers in the U.S. The move would disrupt efforts by Charter Communications to make its own bid for Time Warner Cable, which is the largest cable provider in the Kansas City area.

Comcast is reportedly weighing a bid for Time Warner Cable, a deal that would unify the largest cable providers in the U.S.

Comcast doesn’t see insurmountable regulatory obstacles to the transaction because the companies don’t overlap in many regions, sources told Bloomberg News. The people asked not to be identified because talks have been private and preliminary.

The move would disrupt efforts by Charter Communications, backed by billionaire John Malone, to make its own bid for Time Warner Cable, which is the largest cable provider in the Kansas City area.

Charter has been in discussions with banks, The Wall Street Journal reported Friday. The deal would mean acquiring a much bigger rival: Time Warner Cable has an enterprise value of $61 billion, compared with less than $28 billion for Charter.

Comcast is the largest U.S. cable company, which makes it a more attractive suitor, sources told Bloomberg. With an enterprise value of $168.5 billion, the Philadelphia-based company could bring a bigger cash component to a deal, and the combined entity would have more heft in negotiations with the networks. The threat of a Comcast deal also could put pressure on Charter to sweeten any offer it makes for Time Warner Cable, Bloomberg reported.

Spokesmen for Time Warner Cable, Charter and Comcast declined to comment.

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