What’s next for Time Warner Cable? Not bankruptcy! The company has two major cities which makes it an attractive buy and the company is set to receive major commissions from Comcast.
What makes Time Warner Cable an attractive buy is the cities they serve. TWC is the cable provider for three of the top 5 TV markets – New York (#1), Los Angeles (#2) and Dallas (#5). They also operate in two of the fast growing regions in the United States: I-35 corridor in Texas (San Antonio, Austin and Dallas) and North Carolina (Charlotte, Raleigh, Greensboro and Wilmington). Wikipedia has a list of places TWC currently operates including San Diego, Hawaii, northern Kentucky, the state of Ohio and the Kansas City metropolitan area.
Who will acquire them is anybody’s guess but one company stands out alone.
Keep an eye on Charter Communications as they were going to acquire Bright House Networks. It’s widely expected for that deal to fall apart and Charter wanted to buy Time Warner Cable for $37 billion but TWC rejected Charter’s offer.
Don’t shut out Time Warner, this may be a spark to rejuvenate the company. T-Mobile was given new life after their failed merger and the wireless network is now the third most-popular mobile network (in terms of customers) in the United States and rising.
We should be hearing what concessions Comcast will give to Time Warner Cable because of the failed merger – probably money (millions if not billions). It would be shocking if Comcast has to give up territories to Time Warner Cable but that’s highly unlikely. When AT&T failed to acquire T-Mobile, AT&T gave T-Mobile millions of dollars and new spectrum that the wireless company was finally able to allowed the iPhone to use 4G service instead of EDGE.
If TWC gets nothing, shareholders should immediately replace every member on the board of directors.
We are now in a wait and see mode.