This Day On The Street
Continue to site right-arrow
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

Time Warner Slips as Merger Speculation Eases

NEW YORK ( TheStreet) - Time Warner Cable ( TWC) shares fell Monday after speculation of a takeover by Liberty Media Corp ( LMCA) -controlled Charter Communications ( CHTR) appeared unlikely in the short term.

Time Warner Cable dropped 2.5% to $101.29 after soaring 8% on Friday after CNBC reported that the two companies had discussed a merger.

In a note, Raymond James analysts said the deal had no "foundation in reality," leading to Time Warner shares to slump.

Stamford, Conn.-based Charter holds the fourth-largest market capitalization in the U.S. cable industry at $11.9 billion following Comcast (CMCSA - Get Report), DirecTV and Time Warner Cable. The company operates in the South, while Time Warner largelt services the East Coast.

Speculation of Liberty Media's expansionary ambitions emerged after John Malone, Chairman of Liberty Media, stated at a June 7th shareholder's meeting, that the firm's strong balance sheet and stock valuation would allow it to be a "horizontal acquisition machine looking at other assets in the U.S. cable business."

With programming costs rising, and the need to update systems to compete with the quicker and newer internet networks that Verizon (VZ - Get Report) and Google (GOOG) are implementing with Fios and Google Fiber, established cable companies are thinking of consolidating to garner the necessary capital.

Time Warner CEO Glenn Britt, 64, is expected to step down at the end of the year when his contract expires.

1 of 2

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
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
SYM TRADE IT LAST %CHG
CMCSA $57.06 1.00%
CHTR $190.65 -1.30%
GOOG $542.45 -1.00%
LMCA $38.76 0.54%
TWC $151.81 1.29%

Markets

DOW 17,698.18 -77.94 -0.44%
S&P 500 2,059.69 -8.20 -0.40%
NASDAQ 4,880.2280 -20.6570 -0.42%

Partners Compare Online Brokers

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs