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

Cox Consider Bid To Acquire Time Warner Cable

Cox Communications, the third largest cable operator in the United States, is considering submitting its own proposal or joining other entities to acquire Time Warner Cable Inc (TWC - Get Report), according to a report from the Wall Street Journal based on information from sources familiar with its plan.

Cox Communications expanding business

According to a person familiar with Cox’s plan, it is exploring opportunities to expand its business, and the company made it clear that it is not interested to sell itself. In the past, many perceived the company as a potential takeover target by its peers in the industry.

Privately-held Cox Communications has 4.5 million television subscribers, and it is a bit larger than Charter Communications, Inc. (CHTR - Get Report), which is also pursuing a takeover bid for Time Warner Cable Inc (TWC - Get Report). John Malone, chairman of Liberty Media Corp (LMCA - Get Report) initiated a deal between Charter Communications Inc (CHTR - Get Report) and Time Warner Cable. Malone aims to regain his status and shake up the cable industry as Cable King. Liberty Media owns 27% stake in Charter Communications.

Time Warner Cable and Charter Communication’s deal

Time Warner Cable Inc (TWC - Get Report) rejected Charter Communication's initial proposal, and it recently stated that it will conduct a thorough evaluation of any proposal before entering into a final agreement with any entity.

Comcast Corporation (CMCSA - Get Report), the largest cable company in the country, is also considering the possibility of submitting an acquisition proposal for Time Warner Cable or supporting Charter Communication's bid. Observers in the cable industry believed regulators might object Comcast's merger with Time Warner Cable because of its leading position in the industry.

On the other hand, some people believed that Charter Communications, Inc. (CHTR - Get Report) could face potential problems because it needs to borrow a huge amount to fund a transaction to acquire Time Warner. It would need to offer a generous premium to the shares of its rival. Time Warner Cable Inc (TWC - Get Report) is currently trading around $136.68 per share, up by 3.95% after hours on Tuesday.

The stock price of Charter Communications was up by 1.36% to $136.12 a share and the shares of Comcast Corporation were slightly down at $49.78 per share.

-By Marie Cabural

null

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 $58.88 -1.27%
CHTR $182.96 -1.50%
LMCA $38.83 -1.45%
TWC $156.37 0.71%
AAPL $132.65 1.82%

Markets

DOW 18,037.97 -42.17 -0.23%
S&P 500 2,108.92 -8.77 -0.41%
NASDAQ 5,060.2460 -31.8390 -0.63%

Partners Compare Online Brokers

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs