Comcast and Charter Reportedly Weighing Bid for TWC

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Nov. 22 (Bloomberg) –- Bloomberg’s Alex Sherman discusses the bidding war for Time Warner Cable. He speaks with Jon Erlichman on Bloomberg Television's "Bloomberg West." (Source: Bloomberg)

He joins us from new york.

Walk us through what is happening.

Why this joint bid possibility?

This was a big day for people following the story.

Many have reported incremental details about charter being interested in buying time warner cable.

How is charter, a small company, raise the money it needs to buy time warner cable?

Today we got insight into how that might happen.

If comcast were to enter the negotiations and take it he's -- a piece of time warner cable, charter wouldn't have to be able to raise as much debt.

Comcast could get some strategic assets.

If comcast could add new york city, it would complete the northeast corridor there.

That could be one way of breaking up the assets.

With that said, we learn that comcast is considering buying the entire thing of time warner cable if regulators will go along with that.

In a breakup scenario, it would be an easier sell to washington because comcast has about 22 million subscribers and time warner cable has $12 million -- 12 million subscribers.

We will see.

You mention big numbers.

And even bigger number would be facebook with well over one billion users around the world.

Why this cable consolidation?

These cable companies are competing against these global platforms now.

Right.

You can start small and move out.

Cable doesn't compete against itself.

They are in regions of the country.

They compete against verizon and at&t. they compete against the satellite players, directv and dish.

If you keep pushing it out, they compete with net books and amazon -- netflix and amazon and maybe youtube.

You could say they compete with facebook.

That will be the argument that they make as you see this rapid consolidation.

It is something erect and dish might argue down the road -- direct and dish might argue down the road.

Alex sherman joining us from

This text has been automatically generated. It may not be 100% accurate.

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