Comcast and Charter May Divide and Conquer With a Time Warner Deal

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After much speculation, Comcast Corp. (NASDAQ:CMCSA), currently the leading cable provider in the country, and Charter Communications, Inc. (NASDAQ:CHTR), are in talks regarding the possible acquisition of Time Warner Cable Inc. (NYSE:TWC) — or parts of it, anyway, according to a Reuters report on Friday. Comcast said it would be interested in a deal that would give it the New York market, along with parts of New England — particularly those areas where it does not already have systems set up, such as Maine.

Comcast already has operations in Connecticut and New Jersey, so adding New York would be a natural next move for the company. Similarly, the cable provider currently dominates much of New England, particularly the Boston area, so Maine would also be a logical place to expand operations.

Other areas where Time Warner Cable has markets are less attractive to the cable giant, however. Los Angeles, for instance, doesn’t appeal to Comcast. The city is currently one of Time Warner Cable’s largest markets. The discussions between Comcast and Charter have become more legitimate recently, partially because Comcast says Time Warner Cable has priced itself too high.

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