Will Time Warner Cable Inc (NYSE:TWC) Buckle Under Pressure?
The cable-industry pioneer, John Malone the billionaire is extremely keen that Time Warner Cable Inc (NYSE:TWC) and Charter Communications join forces. Malone holds a majority stake in the latter. In Malone’s opinion, a consolidation is a perfectly logical solution to fight the growing dominance of Satellite TV companies. To date, Malone has not been able to make any headway with the deal said people in the know.
All dealings between Malone and Time Warner Cable Inc (NYSE:TWC) are being handled by Liberty Media, the billionaire’s holding company. Greg Maffei is the Chief Executive Officer of Liberty Media and Malone has saddled him with the job of handling all potential deal processes with Time Warner Cable Inc (NYSE:TWC) which is a much larger business than Charter Communications.
Time Warner Cable Inc (NYSE:TWC) has a market capitalization of approximately $32Bm, which is more than double that of Charter. Malone said that the shareholders have to be convinced and Maffei’s skill will lie in being able to pull this deal off successfully.
Open to a good opportunity
Artie Minson, Time Warner Cable Inc (NYSE:TWC)’s CFO said that in the event of an acquisition or merger deal, the company will consider taking on some additional debt. Minson said that the cable provider is happy in its own skin and does not feel that it has to grow any further. However, under the right circumstances, it is willing to pull on some debt onto the company’s balance sheet.
In Friday’s trading session, Time Warner Cable Inc (NYSE:TWC) stock rose by 0.03%. The opening price of the shares was $111.73 which rose to an intraday high of $112.83 and dropped to a close of $112.17. Approximately 1.39 million shares were traded on Friday and the average volume of shares traded over a 30 day period was $1.55 million.