Time Warner Cable Vows to Wait for the Right Buyer
Time Warner’s incoming CEO, Rob Marcus, who will takeover the position next month, has said that he would be willing to sell the company to the right buyer, Bloomberg reports. The company has said it wants an offer of more than $150 a share if it is to sell, and analysts at Evercore Partners Inc. report that the cable giant could fetch offers as high as $162 a share, per Bloomberg.
While Time Warner Cable has failed consumers in the past few years, the company has continued to see gains and has accumulated a total return of more than 462 percent since it’s 2009 split from Time Warner Inc. Paired with the company’s profits from it’s internet business, which have nearly doubled, has got competitor companies eager to put an offer on the table.
Charter Communications, Inc. is one such company. It’s preparing a $135 a share takeover offer that could appear on Marcus’ desk as early as next year. Thus, it seems that Time Warner Cable Inc. and its shareholders will hold out for a more profitable scenario, as they continue to see gains from recent industry trends. “They’ve been very good at capital allocation, including reducing the size of shares outstanding,” Chris Marangi, a money manager at Gamco Investors, Inc. reported to Bloomberg.