By Alex Sherman and Ed Hammond
May 13 — Charter Communications Inc. continues to work on a takeover of Bright House Networks LLC, seeing the deal as a precursor to a bid for Time Warner Cable Inc., people with knowledge of the matter said.
The companies are in active discussions to reach a new deal, the people said, during an exclusivity period that lasts through most of May. The talks may continue even after that exclusivity ends, the people said.
Charter and Bright House had agreed on a $10.4 billion acquisition, which they announced in March. That was contingent on the closing of Comcast Corp.'s purchase of Time Warner Cable. The agreement included a provision that Charter would renegotiate with Bright House for 30 days if the Comcast-Time Warner Cable deal was called off, which it was on April 24.
Locking down the purchase of Bright House, the sixth- largest U.S. cable company, would bolster Charter's ability to finance an eventual Time Warner Cable takeover, the people said. Charter and Time Warner Cable are discussing the potential structure of their own deal, people have said.
A spokesman for Charter declined to comment. A spokeswoman for Syracuse-based Bright House, which is owned by Billionaire Si Newhouse's Advance Publications Inc. couldn't immediately be reached to comment.
Any deal between Charter and Time Warner Cable will be complicated by the fact that several key investors -- including Newhouse, Charter-backer John Malone, and Time Warner Cable's current shareholders -- will all own a piece of the new company, the people said today.
Charter has a market value of about $20 billion, compared with Time Warner Cable's almost $44 billion. A deal with Time Warner Cable would leapfrog Stamford, Connecticut-based Charter from the fourth-largest U.S. cable provider to the second- biggest, behind Comcast.
During Charter's exclusivity with Bright House, Time Warner Cable can match any offer Charter makes, people with knowledge of the matter have said. New York-based Time Warner Cable has the right to block a Charter-Bright House deal because of a longstanding arrangement to negotiate programming for Bright House.
To contact the reporters on this story: Alex Sherman in New York at firstname.lastname@example.org and Ed Hammond
©2015 Bloomberg L.P. All rights reserved. Used with permission
All Bloomberg BNA treatises are available on standing order, which ensures you will always receive the most current edition of the book or supplement of the title you have ordered from Bloomberg BNA’s book division. As soon as a new supplement or edition is published (usually annually) for a title you’ve previously purchased and requested to be placed on standing order, we’ll ship it to you to review for 30 days without any obligation. During this period, you can either (a) honor the invoice and receive a 5% discount (in addition to any other discounts you may qualify for) off the then-current price of the update, plus shipping and handling or (b) return the book(s), in which case, your invoice will be cancelled upon receipt of the book(s). Call us for a prepaid UPS label for your return. It’s as simple and easy as that. Most importantly, standing orders mean you will never have to worry about the timeliness of the information you’re relying on. And, you may discontinue standing orders at any time by contacting us at 1.800.960.1220 or by sending an email to email@example.com.
Put me on standing order at a 5% discount off list price of all future updates, in addition to any other discounts I may quality for. (Returnable within 30 days.)
Notify me when updates are available (No standing order will be created).
This Bloomberg BNA report is available on standing order, which ensures you will all receive the latest edition. This report is updated annually and we will send you the latest edition once it has been published. By signing up for standing order you will never have to worry about the timeliness of the information you need. And, you may discontinue standing orders at any time by contacting us at 1.800.372.1033, option 5, or by sending us an email to firstname.lastname@example.org.
Put me on standing order
Notify me when new releases are available (no standing order will be created)