Could Liberty’s Sirius Offer Lead to a Bid for TWC?

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Jan. 3 (Bloomberg) –- Bloomberg’s Alex Sherman reports on how Liberty Media’s offer for Sirius XM Holdings could be used to finance a bid for Time Warner Cable. He speaks to Emily Chang on Bloomberg Television’s “Bloomberg West.” (Source: Bloomberg)

Serious financing for time-warner cable.

I just got off the phone with liberty media c.e.o. and what he told me was a potential purpose of this deal for sirius is to use its incremental positive cash flow and low-target leverage rate to potentially facilitate a deal for time warner cable.

This has been something that we have followed for months.

Liberty is the largest share holder in charter.

It will be charter taking over time warner cable.

But liberty has said publicly, they want to make sure they are not diluted in any deal for time warner cable.

They will have to kick in a few million dollars and this deal will give them more resources to do that.

What is the significance of this?

How big a deal is this in the scheme of some of the things we have been talking about, potential consolidation in the cable landscape?

The time warner cable deal would be one of the biggest deals we have seen in years.

It would be at least a $62 billion deal at a $135 target price, which is what our sources familiar have told us charter is thinking about offering.

Maybe slightly below $135. that would be the third largest deal offered.

2009, just lower than the verizon deal back in 2009. that would be an enormous deal.

This particular deal for sirius means that liberty media is going to be one of the active companies around probably for all of 2014. alex, thanks for bringing us that update.

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

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