NEW YORK (TheStreet) -- Cablevision Systems (CVC) was falling 2.31% to $16.49 on Thursday after the announcement that Comcast (CMCSA) would acquire Time Warner (TWC) in one of the biggest deals of the year.
The decline is likely in response to Comcast's $45 billion acquisition of Time Warner, a deal that combines the two largest cable companies in the U.S. The merger should cause increased competition for Cablevision, Verizon (VZ) and other, smaller cable companies. In the New York City area, for example, Time Warner's presence provides access for Comcast, which could pose problems Cablevision in the market.
The stock had a volume of more than 6 million just before noon on Thursday, compared to its average of 3,512,690.
TheStreet Ratings team rates CABLEVISION SYS CORP as a "hold" with a ratings score of C-. TheStreet Ratings Team has this to say about their recommendation:
"We rate CABLEVISION SYS CORP (CVC) a HOLD. The primary factors that have impacted our rating are mixed - some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its increase in stock price during the past year, compelling growth in net income and revenue growth. However, as a counter to these strengths, we find that we feel that the company's cash flow from its operations has been weak overall."