NEW YORK (TheStreet) -- Charter Communications (CHTR) was falling 5.98% to $129.35 on Thursday afternoon after the announcement that Comcast (CMCSA) would acquire Time Warner (TWC) in one of the biggest deals of the year.
The deal caused other cable companies, such as Cablevision (CVC), to drop on Thursday. Charter had publicly sought to acquire all or part of Time Warner for months, and the maneuver would have helped the company close the gap between itself and Comcast, the largest cable provider in the U.S. Instead, the deal combines Comcast with the second-largest cable provider in the country in a move that could drastically alter the media landscape.
Charter had a volume of more than 8 million shares around 3 p.m. on Thursday, well above its average of 1.1 million shares.
TheStreet Ratings team rates CHARTER COMMUNICATIONS INC as a "hold" with a ratings score of C. TheStreet Ratings Team has this to say about their recommendation:
"We rate CHARTER COMMUNICATIONS INC (CHTR) 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 revenue growth, good cash flow from operations and solid stock price performance. However, as a counter to these strengths, we also find weaknesses including generally higher debt management risk, disappointing return on equity and poor profit margins."