NEW YORK (TheStreet) -- Shares of Charter Communications Inc. (CHTR) are up 3.54% to $122. after it was reported that Comcast Corp. (CMCSA) is in talks with Charter about selling or spinning off some 3 million subscribers worth about $18 billion to $20 billion as part of the divestitures related to its $45.3 billion takeover of Time Warner Cable (TWC), according to Reuters.
The talks revolve around either a straight sale of about 3 million, or the potential creation of a spin-off in which Charter would buy a substantial minority stake, sources told Reuters.
Continuing, sources say that there may be other options they are discussing, and that other cable companies also are interested in Comcast's divested subscribers.
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, impressive record of earnings per share growth and compelling growth in net income. However, as a counter to these strengths, we find that the company has favored debt over equity in the management of its balance sheet."