Reuters - Video

Edition: U.S. | U.K. | IN | CN

Breakingviews

Breakingviews: U.S. cable Pac-Man calculator

Wednesday, December 11, 2013 - 03:01

Dec. 11 - Richard Beales and Jeffrey Goldfarb showcase the latest Breakingviews calculator, which imagines Time Warner Cable turning the M&A tables on smaller rival Charter.

▲ Hide Transcript

View Transcript

So the way it is Time Warner Cable at 37 billion dollar cable TV company. Is in play one of the seats is this -- speech -- the communications. A smaller company trying to borrow it may be 25 billion dollars to help it -- it by Time Warner Cable if you've been looking at. This idea of turning the tables with a -- you know I just had a fake out earlier we just had happened with men's warehouse -- kind of right maybe -- work in this situation to -- of the company buys this -- exactly because what would happen is that you would want to have a lot less debt because buying smaller companies even if they were to borrow some money it. That would be a lesson that a company but keep all the benefits of the deal. -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- Putting companies like this together Tennessee and -- -- a run up next both companies -- -- -- -- -- -- on the table -- the problem with this using your target you. Says -- gonna go up and and agreed to acquire they can get down there you've you've kind of been running in them as a get out of life is simple. Right rules -- -- in this case was that you know talk belong to him in autumn and artistic and charter march. And both stocks going up almost -- forty some odd percent since then but in expectation of a deal and have synergies that we. You have to aggressively when it votes -- this -- -- was -- be -- once someone's while to but suddenly it went right that's supposed to you know if you take a look here what we what we started out with those ideas because the stock has run out so much says it. Assume that they don't pay any premiums there's already a big premium built into the stock up. Maybe they fund have to deal with stock half with that. You've soon sort of over a billion dollars -- synergies and you know you put the combined company animal or seven and a half. And so you get is you know a nice little premium to time the current Sampras Islam that is that this would. Might be worth it things and more of the Time Warner. Word of -- right with a buy Canada. I mean my first question would be well wine and premium Vietnamese at the grand but only have to pay premiums written it but people complain that yeah. Yeah W -- so let's assume that there is a 15% premium instead of 0%. And then you might even assume are right now because of all the students both stocks are trading at higher than eight times that it does so you're very conservative that the -- and it goes today. And and you see even in that scenario. You know you get even higher agreement if you think the locals going to be the pregnant as a pretty bright you can -- all those numbers trying to figure out you know what we're. And when it does tell you is there are some other factors that you want to think about you know not just the financial network it would -- Charter right. And you know but at the very least even have Time Warner Cable to wanna turn the tables what this can try and show you who's. What the value is for -- cable which right now the stock is trading around 130. Maybe it means you know based on this that charters gonna have to pay up to really wants to you know roads and -- -- Thanks to believe that. You can final -- -- breaking -- -- Coleman will be back with more breaking news tomorrow.

Press CTRL+C (Windows), CMD+C (Mac), or long-press the URL below on your mobile device to copy the code

Breakingviews: U.S. cable Pac-Man calculator

Wednesday, December 11, 2013 - 03:01

Top News »

Most Popular »

Retirement »

Investing 201 »

Bond investors brace for the end of Fed stimulus Bond investors brace for the end of Fed...

Fri, Oct 10, 2014 - (4:03)

Arian Foster = BlackBerry? Arian Foster = BlackBerry?

Fri, Oct 25, 2013 - (3:16)

Don’t miss these red flags for IPOs Don’t miss these red flags for IPOs

Thu, Oct 10, 2013 - (2:34)

Copycat currency trading Copycat currency trading

Wed, Oct 02, 2013 - (2:28)

When to dump a winner When to dump a winner

Tue, Sep 24, 2013 - (1:55)

Where gold might again attract Jim Rogers Where gold might again attract Jim Rogers

Thu, Sep 19, 2013 - (2:05)

Why savings interest rates won't budge Why savings interest rates won't budge

Fri, Sep 13, 2013 - (2:09)

Buy local? ETFs try the trend Buy local? ETFs try the trend

Thu, Sep 05, 2013 - (2:42)

The better bond funds The better bond funds

Wed, Aug 07, 2013 - (2:40)

Best bargain in 40 years? European stocks Best bargain in 40 years? European stocks

Thu, Aug 01, 2013 - (2:24)

Invest like an activist Invest like an activist

Fri, Jul 26, 2013 - (2:49)

Why bruised Brazil is a buy Why bruised Brazil is a buy

Fri, Jul 19, 2013 - (2:48)

3 ways to fix your bond portfolio 3 ways to fix your bond portfolio

Thu, Jul 11, 2013 - (3:10)

The next gold? Diamonds lure investors The next gold? Diamonds lure investors

Wed, Jul 03, 2013 - (2:38)

How to play the Fed’s tapering timeline How to play the Fed’s tapering timeline

Thu, Jun 20, 2013 - (2:34)

How to play banker on the web How to play banker on the web

Tue, Jun 11, 2013 - (2:57)

3 surprises about the 2013 stock rally 3 surprises about the 2013 stock rally

Fri, May 24, 2013 - (2:11)

How to cash in on lawsuits - Investing 201 How to cash in on lawsuits - Investing 201

Tue, Apr 30, 2013 - (2:30)

Rising dollar will drive stocks higher Rising dollar will drive stocks higher

Wed, Apr 10, 2013 - (2:32)

A little-known path to big dividends - Investing 201 A little-known path to big dividends -...

Thu, Apr 04, 2013 - (3:16)

What exactly does Warren Buffett own? - Investing 201 What exactly does Warren Buffett own? -...

Thu, Feb 14, 2013 - (0:51)

Big short bets: Where are they now? - Investing 201 Big short bets: Where are they now? -...

Fri, Dec 21, 2012 - (2:33)

Money Clip »

How to get out of debt How to get out of debt

Thu, Oct 30, 2014 - (3:37)

Will Apple Pay transform mobile payments? Will Apple Pay transform mobile payments?

Thu, Oct 16, 2014 - (2:45)

3 things to do before disaster strikes 3 things to do before disaster strikes

Wed, Sep 18, 2013 - (1:39)

Your must-do money list Your must-do money list

Wed, Sep 11, 2013 - (1:24)

The worst "best" financial advice The worst "best" financial advice

Wed, Sep 04, 2013 - (1:42)

Forget gold: The case for REITs Forget gold: The case for REITs

Fri, Apr 26, 2013 - (1:19)

3 rules for buying a house now 3 rules for buying a house now

Thu, Apr 18, 2013 - (1:39)

“Stalking” your dream home - Money Clip “Stalking” your dream home - Money Clip

Wed, Mar 27, 2013 - (2:50)

3 hidden tax deductions - Money Clip 3 hidden tax deductions - Money Clip

Thu, Mar 21, 2013 - (1:33)

How to break your prenup - Money Clip How to break your prenup - Money Clip

Thu, Mar 07, 2013 - (1:18)

Watch your wallet on Pinterest - Money Clip Watch your wallet on Pinterest - Money Clip

Thu, Feb 21, 2013 - (1:33)

Get set for the big bull run - Money Clip Get set for the big bull run - Money Clip

Thu, Jan 24, 2013 - (3:41)

Moving Pictures »

Images of January Images of January

Fri, Jan 30, 2015 - (0:30)

Images of December Images of December

Tue, Dec 23, 2014 - (0:30)

Tsunami - unclaimed possessions Tsunami - unclaimed possessions

Tue, Dec 23, 2014 - (2:23)

Images of November Images of November

Tue, Dec 02, 2014 - (0:30)

Images of October Images of October

Mon, Nov 03, 2014 - (0:57)

The world in a city The world in a city

Fri, Oct 31, 2014 - (1:30)

Real-life superheroes Real-life superheroes

Tue, Oct 28, 2014 - (1:44)

Dance of the northern lights Dance of the northern lights

Mon, Oct 20, 2014 - (1:08)

Images of September Images of September

Wed, Oct 01, 2014 - (1:00)

Still missing – MH370 Still missing – MH370

Fri, Sep 05, 2014 - (2:05)

Burning Together Burning Together

Mon, Sep 01, 2014 - (2:23)

Mending dolls, teddies and hearts Mending dolls, teddies and hearts

Fri, Aug 22, 2014 - (3:12)

Images of August Images of August

Fri, Aug 29, 2014 - (1:00)

"Old timers" sail the Chesapeake Bay "Old timers" sail the Chesapeake Bay

Mon, Aug 11, 2014 - (2:27)

Burned memories Burned memories

Fri, Aug 08, 2014 - (3:02)

Images of July Images of July

Thu, Jul 31, 2014 - (1:20)

World Cup: passion on the pitch World Cup: passion on the pitch

Fri, Jul 11, 2014 - (1:00)

A refugee in America gives back A refugee in America gives back

Thu, Jul 03, 2014 - (3:25)

A long search for refuge A long search for refuge

Fri, Jun 20, 2014 - (3:04)

World Cup: Around the globe in 50 goals World Cup: Around the globe in 50 goals

Fri, Jun 06, 2014 - (1:08)

VIVID – Sydney’s spectacle of light VIVID – Sydney’s spectacle of light

Fri, May 30, 2014 - (1:37)

The week that changed Boston The week that changed Boston

Mon, Apr 14, 2014 - (3:28)

360° snapshot of life in Kabul 360° snapshot of life in Kabul

Fri, Apr 04, 2014 - (1:26)

A blind teenager, living with vision A blind teenager, living with vision

Thu, Mar 27, 2014 - (3:51)

TIMELAPSE: Backstage at the Oscars TIMELAPSE: Backstage at the Oscars

Wed, Mar 05, 2014 - (2:49)

TIMELAPSE: Lunch with Oscar nominees TIMELAPSE: Lunch with Oscar nominees

Wed, Feb 12, 2014 - (2:55)

Sochi Highlights: Let the games begin Sochi Highlights: Let the games begin

Fri, Feb 07, 2014 - (0:40)

TIMELAPSE: On the Golden Globes red carpet TIMELAPSE: On the Golden Globes red carpet

Tue, Jan 14, 2014 - (3:28)

Reuters Investigates »

Where the sea is closing in Where the sea is closing in

Thu, Nov 20, 2014 - (3:41)

Re-homing victim: "I could have been dead" Re-homing victim: "I could have been dead"

Wed, Feb 19, 2014 - (8:24)

Cops and loggers in the Amazon rainforest Cops and loggers in the Amazon rainforest

Fri, Jan 10, 2014 - (4:01)

"Passed around like a dog" "Passed around like a dog"

Thu, Aug 29, 2013 - (6:32)

Adopted, then abandoned online Adopted, then abandoned online

Thu, Aug 29, 2013 - (13:22)

How the DEA keeps its secrets secret How the DEA keeps its secrets secret

Mon, Aug 05, 2013 - (1:36)

How education lost its role as the great equalizer - Reuters Investigates How education lost its role as the great...

Mon, Dec 17, 2012 - (7:52)

Jihad Jane: From abused child to American jihadist - Reuters Investigates Jihad Jane: From abused child to American...

Sat, Dec 08, 2012 - (10:02)

Jihad Jane: The order to kill - Reuters Investigates Jihad Jane: The order to kill - Reuters...

Sun, Dec 09, 2012 - (10:40)

Lessons of the Jihad Jane case - Reuters Investigates Lessons of the Jihad Jane case - Reuters...

Sun, Dec 09, 2012 - (3:43)

Exclusive: Jihad Jane in her own words Exclusive: Jihad Jane in her own words

Sat, Dec 08, 2012 - (4:11)

Attorney: How a Maryland teenager became radicalized - Reuters Investigates Attorney: How a Maryland teenager became...

Fri, Dec 07, 2012 - (4:21)

Dateline Asia »

Asia stocks gain in January Asia stocks gain in January

Fri, Jan 30, 2015 - (1:25)

Samsung sees profits slide Samsung sees profits slide

Thu, Jan 29, 2015 - (0:57)

Chinese firms on overseas shopping sprees Chinese firms on overseas shopping sprees

Wed, Jan 28, 2015 - (2:28)

iPhone grabs top spot in China iPhone grabs top spot in China

Wed, Jan 28, 2015 - (1:40)

Robot replacements for Foxconn's workers Robot replacements for Foxconn's workers

Wed, Jan 28, 2015 - (1:12)

Alibaba could set sights on Yahoo Alibaba could set sights on Yahoo

Tue, Jan 27, 2015 - (1:24)

Fashion designers finding haste makes waste Fashion designers finding haste makes waste

Mon, Jan 26, 2015 - (2:07)

Be afraid, the Chinese are spending less Be afraid, the Chinese are spending less

Mon, Jan 26, 2015 - (1:33)

Asia markets shrug at Greek elections Asia markets shrug at Greek elections

Mon, Jan 26, 2015 - (1:36)

Asia markets toast ECB stimulus Asia markets toast ECB stimulus

Fri, Jan 23, 2015 - (1:42)

Asia Week Ahead: Markets await Greece vote Asia Week Ahead: Markets await Greece vote

Fri, Jan 23, 2015 - (1:18)

Netflix to push play in China Netflix to push play in China

Thu, Jan 22, 2015 - (1:41)

Japan in a tight spot over hostage crisis Japan in a tight spot over hostage crisis

Thu, Jan 22, 2015 - (1:05)

Behind the pretty face of K-pop Behind the pretty face of K-pop

Wed, Jan 21, 2015 - (2:09)

Record slowdown in China's economic growth Record slowdown in China's economic growth

Tue, Jan 20, 2015 - (1:52)

North Korean defector changes his story North Korean defector changes his story

Mon, Jan 19, 2015 - (1:03)

China stocks hit by credit crackdown China stocks hit by credit crackdown

Mon, Jan 19, 2015 - (1:16)

Xiaomi smartphones look to go global Xiaomi smartphones look to go global

Mon, Jan 19, 2015 - (1:54)

Clamping down on China's toxic toys Clamping down on China's toxic toys

Fri, Jan 16, 2015 - (1:11)

In China, a new a challenge to Apple In China, a new a challenge to Apple

Fri, Jan 16, 2015 - (1:09)

Ecstatic Filipinos cheer the Pope's arrival Ecstatic Filipinos cheer the Pope's arrival

Fri, Jan 16, 2015 - (1:11)

Investors rush to safe havens Investors rush to safe havens

Fri, Jan 16, 2015 - (1:35)

Hope from Japan's "economy watchers" Hope from Japan's "economy watchers"

Thu, Jan 15, 2015 - (1:34)

McDonald's tests a brand new image McDonald's tests a brand new image

Wed, Jan 14, 2015 - (1:19)

China's economy going to the hogs China's economy going to the hogs

Wed, Jan 14, 2015 - (1:36)

Second black box found in AirAsia crash Second black box found in AirAsia crash

Tue, Jan 13, 2015 - (1:11)

Facebook seeks friends in China Facebook seeks friends in China

Tue, Jan 13, 2015 - (1:37)

Made-in-China Volvos roll into U.S. Made-in-China Volvos roll into U.S.

Mon, Jan 12, 2015 - (1:18)

Sri Lanka votes strongman president out Sri Lanka votes strongman president out

Fri, Jan 09, 2015 - (1:12)