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

Comcast Chief Touts Public Interest in TWC Bid

NEW YORK (The Deal) -- Comcast (CMCSA - Get Report) Chairman and CEO Brian Roberts pitched his company's $67 billion purchase of Time Warner Cable  (TWC - Get Report) as a consumer-friendly deal that would boost competition, during a Thursday, Feb. 13, investor call.

"It is pro-consumer, pro-competitive and strongly in the public interest," Roberts said of the proposed combination of the two largest cable operators.

Time Warner Cable shareholders would receive $158.82 per share in Comcast stock. The deal values Time Warner Cable's equity at $45.2 billion. Including debt, the transaction has a value of $67 billion. The valuation translates to 7.9 times Ebitda, but would fall to about 6.7 times Ebitda when factoring in expected savings.

The offer trumps a $132.50 per share hostile offer from Charter Communications Inc., which has backing from John Malone's Liberty Media (LMCA - Get Report)

Shares of Comcast dropped $1.99, or 3.6%, Thursday morning, to $53.25. Time Warner Cable stock gained $9.24, or nearly 7%, to 144.55. Charter fell $9.07, or about 6.6%, to $128.50.

"The world changes very rapidly with technology," Roberts told investors regarding the cable industry.

Pay-TV competition has increased greatly in a quarter century, he said, with some of Comcast's rivals providing national or international services. A combined Comcast and Time Warner Cable would expand in business services, he added, and push the evolution of cable services in cloud services and new devices.

Roberts' vision echoes comments by Malone, who suggested in January that cable operators needed to consolidate "to attract the developers and innovators critical to remaining competitive." Malone's Liberty Media agreed to provide capital in support of Charter's more than $60 billion cash and stock offer.

Charter showed no signs of backing down from its hostile bid after nominating a full slate of directors for Time Warner Cable's board. The target had pushed Charter to increase its offer and to boost the cash component of the offer.

Time Warner Cable CEO Robert Marcus explained the acceptance of an all-stock bid from Comcast, saying the equity of the two suitors were "apples and oranges." He added that Time Warner Cable investors would hold more than 23% of the combined companies.

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 $59.64 0.00%
LMCA $39.40 0.00%
TWC $155.26 0.00%
AAPL $130.28 0.00%
FB $81.53 0.00%

Markets

DOW 18,080.14 +21.45 0.12%
S&P 500 2,117.69 +4.76 0.23%
NASDAQ 5,092.0850 +36.0220 0.71%

Partners Compare Online Brokers

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs