This Day On The Street
Continue to site
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

Comcast, Time Warner Cable: What Wall Street Is Saying

NEW YORK (TheStreet) -- Comcast (CMCSA - Get Report) is buying Time Warner Cable (TWC - Get Report) for $158.82 a share in an all-stock deal that values the second largest cable operator in the U.S. at just over $45 billion.

Here's what analysts are saying after the deal broke late Wednesday night and snow pounded Wall Street on Thursday morning.

Oppenheimer's Timothy Horan

A deal makes huge strategic sense, and should be accretive to EPS despite a high price paid. In addition to basic synergies, a deal could incentivize the other MSOs to get behind Comcast's X2 video platform and its wifi/wireless, and reduce potential OTT competition.

Must Read: No Wall Street Bonanza in Comcast and Time Warner Cable Merger

The 8.4x 2014E headline number is about 5% higher than we would have expected and about a 20% premium to recent publicly traded cable stocks, but the synergies should offset half of this.

We believe this transaction will spur other consolidation including: Dish/DTV, S/TMUS, T/VOD. It likely will also cause these larger companies to look to acquire CLECs (TWTC or LVLT) and cloud providers (RAX).

UBS's John Hodulik

The proposed deal would extend Comcast's reach with its X1 platform. The company has shown improving video sub trends (and pos sub growth in 4Q) even before the new platform has been able to make an impact. We believe New Co. would make it more difficult for satellite to pick off additional video customers. We also expect the increased scale and reach of the company to better penetrate the mid and upper end of the business market.

The proposed deal is reportedly expected to close by YE and would undoubtedly come with an extension of the net neutrality provisions it agreed to with the NBCU deal, solving a problem for regulators and potential problem for Internet companies. The size and market power of New Co. would likely create more questions regarding the possibility of a DTV-DISH deal but we would note that a cable deal would not lessen the number of competitors in a market.

-- Written by Antoine Gara

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
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
CMCSA $61.23 0.77%
TWC $215.06 1.39%
AAPL $93.64 -0.11%
FB $118.57 0.84%
GOOG $698.21 0.75%


Chart of I:DJI
DOW 17,891.16 +117.52 0.66%
S&P 500 2,081.43 +16.13 0.78%
NASDAQ 4,817.5940 +42.2360 0.88%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs