Charter rumoured to be drawing up TWC merger plans

DetailsEditor | 10 May 2015

Only weeks after a similar move with Comcast spectacularly came to nothing, Time Warner Cable (TWC) is now said to be in the sights of fellow US cableco Charter Communications.

According to reports in the Wall Street Journal, Charter is in early talks with banks to arrange a debt package of $25 billion to $30 billion, significantly less than the $45 billion offered by Comcast

If the reports were true, this would be the second time that Charter has tried to acquire TWC, failing with a hostile bid at the end of 2014. So far the move has not attracted any criticism from Charterís investors. The WSJ quoted Greg Maffei, CEO of Liberty Media which 25% owner of Charter, as saying that his company would not change its holding and that partners may be lining up to help out with a TWC bid.

In addition to price, regulation may also play a significant part in what may happen, being a key factor in the failed Comcast bid for which US telecoms and broadcast regulator the FCC had a number of concerns regarding the mergerís effect on online video development in the country. Even though Comcast and Charter are dissimilar organisations, analysts were already expecting FCC approval as crucial to any development.