Malone Behind Charter Communications' Pursuit Of TWC

Charter Communications continues to pursue Time Warner Cable, the U.S. largest cable operator, according to reports.

Last week, both companies' stocks shot up around 3% over news of a potential deal. A report in Reuters suggested Charter was trying to close a deal by the end of the year.

It has been no secret that Liberty Media Chairman John Malone intents to build more scale when it comes to the cable business -- Liberty Media owns about one-quarter of Charter. Malone’s plan is to gain leverage in the marketplace with network programmers, as well as other cable, satellite and telco TV network distributors.

He also believes the cable industry should build new digital video companies, like Netflix.

Charter is the fourth-biggest U.S. cable operator with a market value of $13 billion -- about a third of Time Warner Cable. Time Warner Cable has 12 million video cable customers; Charter has 4 million.

A recent earnings phone call revealed Time Warner Cable lost around 300,000 video customers in the third quarter -- mostly due to the month-long TV blackout amid failed negotiations with CBS. Time Warner Cable also lost Internet customers during the period.

Midday Monday trading of Charter stock showed it at $136.60, down 1%. Time Warner Cable was at $122.30, down 1%

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