Comcast Considers Options for Time Warner Takeover

  • Like on Facebook
  • Share on Google+
  • Share on LinkedIn

tv

Late last week it was reported that Charter Communications (NASDAQ:CHTR) is preparing an offer letter for Time Warner Cable (NYSE:TWC), and now it looks like Comcast Corp. (NASDAQ:CMCSA) is weighing its own options for a Time Warner bid.

People familiar with the matter who spoke to Reuters on Monday said that Comcast is considering three different options for a potential acquisition of Time Warner. The company is discussing the potential for a full takeover, purchasing only certain Time Warner markets that would be most advantageous, or finding a partner to help take on the burden of a bid for the whole company.

Since Comcast is the number one cable operator in the country and Time Warner is the second largest, a full takeover could be difficult to get past regulators. It is worth noting that cable companies mostly compete with satellite and telecom operated TV services, rather than each other, so a combination of the top two companies may be allowed to pass. If it did, the combined Time Warner-Comcast company would have 35 million subscribers while the next largest cable operator, Cox Communications, would only have 4.5 million.

More Articles About:

To contact the reporter on this story: staff.writers@wallstcheatsheet.com To contact the editor responsible for this story: editors@wallstcheatsheet.com

Yahoo Finance, Harvard Business Review, Market Watch, The Wall St. Journal, Financial Times, CNN Money, Fox Business