Charter seeks to raise $25 billion to fund Time Warner Cable bid: report

Wed Nov 27, 2013 4:43pm EST

A Time Warner Cable truck sits parked at its office in Carlsbad, California November 5, 2012. REUTERS/Mike Blake

A Time Warner Cable truck sits parked at its office in Carlsbad, California November 5, 2012.

Credit: Reuters/Mike Blake

(Reuters) - Charter Communications (CHTR.O) is arranging $25 billion in debt financing to help it fund a bid for Time Warner Cable (TWC.N), the Wall Street Journal reported on Wednesday, citing anonymous sources.

Time Warner Cable has been an acquisition target for John Malone, chairman of Liberty Media Corp (LMCA.O), Charter's biggest shareholder, for several months.

EarTimelier this year, Charter made an offer for the company but Time Warner Cable rejected it. Rival cable companies Comcast (CMCSA.O) and Cox could also be interested bidders for Time Warner Cable, according to media reports.

A Charter spokeswoman declined to comment on the Wall Street Journal report. A Time Warner Cable spokeswoman did not immediately respond to a request for comment.

Time Warner Cable could pay out more than $50 million to incoming Chief Executive Robert Marcus as part of his contract, if the company is bought while he is CEO and he is replaced, Reuters reported earlier on Wednesday.

Time Warner Cable, which on its last earnings call said that it was open to a deal at the right price, has a market value of more than $34 billion, compared with Charter's market value of about $13 billion.

Time Warner Cable shares rose 24 cents or 0.2 percent to $136.80 per share.

(Reporting by Liana B. Baker; Editing by Leslie Gevirtz)

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Comments (1)
I object to this merger because these companies, like all cable companies, are monopolies. A merger would only increase their stranglehold.

Cable companies routinely get the worst customer satisfaction by far of any industries. Monopolistic behavior is the reason why these companies do so poorly, it’s like the old SNL skit with Lily Tomlin – “We’re the phone company, we don’t have to care.”

In my opinion, they should all be reclassified as public utilities, severely regulated, and forced to share their infrastucture so that there’s true competition in the market. This is one industry that just screams for more consumer protection.

Nov 27, 2013 5:57pm EST  --  Report as abuse
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