• Reuters, Tuesday, September 14, 2010 11:27 PM

Time Warner Cable and privately-held Cox Communications have held early talks to swap cable systems in California and also broached the idea of a broader alliance, according to sources. The cable systems were valued around $2 billion.

The early-stage talks between Time Warner Cable and Cox, the second- and third-largest U.S. cable operators, were aimed at competing better against larger rival Comcast Corp., which is buying NBC Universal from General Electric, the sources said. Cable companies typically seek to expand to reduce the impact of programming costs on their bottom line. The more customers a cable or satellite operator has the better leverage they have to reduce programming fees in negotiations with cable networks and broadcasters.

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