NEW YORK (TheStreet) -- Time Warner Cable (TWC) and Charter Communications (CHTR) are said to have held separate acquisition talks with Bright House Networks, according to a report from the Wall Street Journal.
Bright House is a digital cable TV provider with two million customers and a steady cash flow, the Journal noted, citing sources that said if Charter were to acquire Bright House it could be a stepping stone towards going after Time Warner Cable.
The talks between Bright House, Time Warner Cable, and Charter are said to be in preliminary stages.
Speculation that Charter Communications would make a bid for Time Warner Cable began almost immediately after the Time Warner Cable/Comcast (CMCSA) merger fell through. Last year Charter was looking into a hostile takeover of the cable provider before Comcast made its bid.
If Time Warner Cable were to acquire Bright House not only would it remove an asset that would boost Charter's deal ambitions, it would also make the company more expensive and complex to acquire, the Journal said.
Time Warner Cable stock closed at $155.52 on Thursday afternoon.
Separately, TheStreet Ratings team rates TIME WARNER CABLE INC as a Buy with a ratings score of B+. TheStreet Ratings Team has this to say about their recommendation:
"We rate TIME WARNER CABLE INC (TWC) a BUY. This is driven by a few notable strengths, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its revenue growth, growth in earnings per share, good cash flow from operations, expanding profit margins and increase in stock price during the past year. We feel these strengths outweigh the fact that the company has had generally high debt management risk by most measures that we evaluated."