Time Warner Cable an acquisition target: report
Time Warner Cable Inc. (NYSE:TWC) is being pursued, based on a report that billionaire-backed cable provider Charter Communications (NASDAQ:CHTR) is teaming up with Goldman Sachs Group (NYSE:GS) to buy the company.
Bloomberg cites sources who say John Malone, who paid $2.6 billion for a 27 per cent stake in Charter, is mulling over the idea with Charter's chief executive officer Tom Rutledge.
Time Warner Cable already rejected Charter, less than half the size of its target, because the informal bid did not offer much of a premium.
There were no other details, including how much Charter and Goldman would pay and how they would divide up ownership.
Seperately, Time Warner Cable said CBS is charging the company 600 per cent more than what it pays in other U.S. regions for the same content. Time Warner Cable says it is "negotiating very hard for a reasonable price ... so that our customers don’t have to endure yet another broadcaster blackout."
Time Warner Cable shares rose nearly three per cent to $117.29, while Charter gained 2.8 per cent to $128.03.