This Day On The Street
Continue to site
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Malone's Moves Put Spotlight on Cablevision

NEW YORK ( TheDeal) -- What's not to like about the headline slapped on Tuesday's research update from Macquarie Capital (USA) Inc. about Liberty Media Corp.'s John Malone re-entering the U.S. cable business after a 14-year hiatus? All it had to say was "He's Back ..." because it goes without saying he'll never again go away.

The Macquarie update remains neutral on Charter Communications Inc., the cable company in which Malone's Liberty Media is taking a 27.3% stake by acquiring shares from private-equity holders in a $2.6 billion transaction. But that's mostly because Charter's turnaround since emerging from bankruptcy in late 2009 has already been priced into the stock.

Shares of Liberty Media were down 0.5% to $109.53 in mid-day trading while Charter Communications was droppedin 0.9% to $102.34.

Yet the update does view the return of Malone, who headed former industry leader Tele-Communications Inc. during its explosive growth, as having "positive implications" for the cable industry in general. And let's not forget the deals that Malone seemed to forge weekly before selling TCI to AT&T Corp. in 1999. Their implications are positive for cable M&A in particular.

"He's not going to just sit there and watch his equity go up," says a longtime follower of Malone. "No, he's going to offer Charter his services for all the opportunities he sees in terms of financial and operational engineering."

One of those opportunities will almost surely be Cablevision Systems Corp., a New York-centric operator that last month sold its Optimum West unit to Charter for $1.6 billion. Optimum West, with 366,000 customers in the Rocky Mountains, had been an anomaly inside Cablevision since its acquisition in 2010. Cablevision's $1.4 billion purchase of the remote cable system -- known as Bresnan Communications LLC back then -- struck many as a concession to the acquiring company's then-COO Tom Rutledge.

After eight highly applauded years at Cablevision, Rutledge was reportedly getting bored in the job and starting to attract poachers. He wound up leaving the company anyway, under murky circumstances in December 2011, only to sign on as Charter's CEO later the same month. This means Rutledge bought the old Bresnan system twice: first for Cablevision and second for Charter.
1 of 3

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
SYM TRADE IT LAST %CHG
CHTR $181.59 0.00%
LMCA $37.38 0.00%
MSG $71.03 0.00%
NWSA $13.80 0.00%
TWX $72.38 0.00%

Markets

Chart of I:DJI
DOW 16,643.01 -11.76 -0.07%
S&P 500 1,988.87 +1.21 0.06%
NASDAQ 4,828.3250 +15.6170 0.32%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs