NEW YORK (TheStreet) -- Shares of Time Warner Cable (TWC) were down 0.36% to $182.94 in early market trading Wednesday, after Charter Communications (CHTR) made a $195 a share takeover bid to acquire its larger rival yesterday.

The $56 billion buyout of Time Warner Cable would mark a huge step toward industry consolidation, Reuters noted.

This morning, analysts at Needham & Co upgraded shares of cable giant Time Warner Cable to "hold" from "underperform" following the announcement of the cable-TV deal on Tuesday.

TheStreet's Jim Cramer, Portfolio Manager of the Action Alerts PLUS Charitable Trust Portfolio believes the deal will work, and said in a video that Charter is a very smart company.

He added that even though he believes Time Warner Cable will likely go higher, Cramer's method is to take profits in the company that's being acquired and own the acquirer itself.

Last year, Charter bid about $132.50 per share, or $37.3 billion, for Time Warner Cable. However, Comcast (CMCSA) swooped in and beat their bid with an all-stock deal worth $158.82 per share, according to Reuters.

Then in April, Comcast gave up on its $45 billion takeover deal of Time Warner Cable after the FCC determined that it would be an anti-competitive deal.

U.S. regulators were concerned that the deal would have given Comcast an unfair advantage in the cable TV and Internet-based services market, Reuters added.

Cramer said he believes the FCC and the Department of Justice got this one wrong, and that they should not have scrapped the deal.

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