Takeover Talks Continue for Time Warner Cable

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Nov. 29 (Bloomberg) -- Mediamorph Co-Founder and Chairman Shahid Khan discusses takeover talks for Time Warner Cable. He speaks with Deirdre Bolton and Jon Erlichman on Bloomberg Television's "In The Loop." (Source: Bloomberg)

Is like melrose place going on there.

Both companies, they are teaming up.

The main reason, in my opinion for that to be a better scenario, one a strategically, the real competition that cable has today is not from within its own peers, it is more from telcos as long as online content.

The leadership is outstanding in terms of management and innovation and aspects of how they're growing the business and the platforms they're launching.

The second thing is, these companies can try to get this thing alone, but from a regulatory point of view, even though there are not hurdles, it is easier to get it done if they sped it up.

They get geography that is contiguous and against them better economy to scale.

The third main reason is if they split it up, the debt is going to be lower than if charter goes at it alone.

Cox has a better balance sheet, but strategically, joining a comcast and charter merger would be better.

I have to bring in john erlichman.

He said online content and "melrose place." those are your two qs.

If it -- it is dead on.

The arguments that he is made for cable consolidations -- paid tv players were complaining -- competing with facebook.

People are discovering video and watching video through platforms like facebook.

Twitter is cutting more deals with television.

Do you think facebook is a fair argument and making here for cable consolidation?

I think online general, youtube is a stronger player than facebook, but these markets change over time.

Online content is the real competition that these companies have.

They have done a good job trying to fend off the threat that comes in, but in the long term, the cable industry should look more like the telecom industry.

You say a few large players, if you -- a few smaller ones.

Let's fast forward, take out your crystal ball, two years from now, how does this whole sector look?

They will probably look for consolidation.

The cost of content keeps going up.

The bigger you are, the better your leverage is.

With infrastructure, when you're going out and buying hardware and software, economy and scale actually matters.

You will see three big players.

The smaller ones, like media calm, satellite, and cable television will end up consolidating as well.

What is that mean from what your sources tell you?

Content creation.

It is important to try to find a way to stay relevant.

You hear about young people who are using other services that they can get very easily, whether it is netflix or hulu.

I think it is important for the cable industry to continue to have a gate around sports.

A lot of the sports rights are locked up long-term.

A lot of people are talking about what happens.

What happens if the long-term rights of some sports end up in the hands outside of the traditional paid tv wall.

-- paid tv wall?

They spent $36 billion acquiring content rights.

There are not that many online players that can actually write a check that is worth the cost.

This -- the idea of this content is a little bit harder if you do not catch it live.

Are there implications there?

Sports and news, those are the two types of content where there is value in the timeliness of it.

That is why there is a higher premium in terms of the cost.

Most people are actually not watching it live.

They're watching it on dvr's or tv everywhere, who plus, other platforms.

From a live content point of view, sports is in the lead.

We talked about all of these players, some of the smaller ones.

Is there an executive out there that is a rock star?

If there is one name to take away, who is executing, whether it is a big or small company, who is executing fast?

Tom rutledge has taken over charter recently and the best is yet to come.

He is an outstanding operator and a great executive.

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


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