Will Time Warner Cable Inc (NYSE:TWC) Buckle Under Pressure?

Posted by Kristi Scott September 30, 2013 0 Comment 5129 views

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.

Bigger player

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.

Friday’s trading

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.

About Kristi Scott

Kristi Scott joined GDP Insider in 2005 as a Wall Street reporter for the Business and Market section. Kristi covers the stock market, financial markets and personal finance. Her awards have come from the National Federation of Professional Writers, the Ohio Newspaper Association, the Cleveland Press Club, the Society of Professional Journalists and Suburban Newspapers of America. Kristi was named SNA's national Journalist of the Year

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