What's Next for Liberty's John Malone?

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Jan. 8 (Bloomberg) -- MoffettNathanson Founder Craig Moffett discusses billionaire John Malone's acquisition of Sirius XM on Bloomberg Television's "Bloomberg Surveillance." (Source: Bloomberg)

First of all, he has the history you describe.

The cable cowboy history, really the grandfather of the modern cable industry.

But as you said, john once said it is a crime against humanity for a cable company to be levered at less than four times either.. now you have the whole industry with the exception of chartered, which he partially controls, with relatively low levels of leverage.

One of the things he wants to do is bring back the leverage -- totally pushing against him in a consensus.

The leverage, forget about it, want to leverage up and make things happen.

Within that -- the vogue word at the moment, disruptive -- is a disruptive in the industry or does it embraced activism and the ability to shake things up?

He is actually talking about something i think the whole industry will get behind.

He wants the cable industry to return to the heyday of the 1990's when it cable operators work much more collaboratively.

They don't compete with each other.

They are in separate geographies so they don't directly compete.

But they don't necessarily collaborate and all the ways he thinks they could and should.

Yesterday, for example, you heard comcast say they were going to start growing subscribers again, for the first time in 20 six quarters.

One of the reasons they are doing that is the technology platform they developed for video and demand for -- and the user interface.

John thinks everybody should be licensing that platform from comcast and the cable industry should have a much more uniform face to the american public.

There's a lot of what others would cost synergies that he thinks is just running the business is better, just getting the companies to work more collaboratively and share best ideas.

Who is on board with him in terms of collaboration.

Right now, his vehicle is charter and the ceo tom rutledge.

But the whole industry actually i think in races that concept.

The devil is always in the details, and the question is, right now, if the prizes time warner cable, time warner cable for obvious reasons has their own view of whether or not they should be controlled by someone else or independently.

Comcast is still considering getting involved.

And all of them are looking at it in part because a look at this as, well, what should they be doing a friendly with more scale?

Should we be negotiating differently with programmers.

Should we be deploying technology differently?

All of those in the table and everybody has the own vision.

The big question of whether malone was able to pull up the deal was at some point financing, because chartered was a much smaller company and obviously time warner is much larger.

Now that he had charter communications, now that he has the sirius deal potentially and he potentially could go out and raise financing from banks, what else is standing in the way?

Because regulators seem like they would be ok with it.


I don't think financing itself could ever been the limitation.

The limitation is whether the board at time warner cable was able to sell for the price charter is willing to pay, and the answer is, we don't know that.

This is something we will continue to monitor and we hope you can get instant analysis when it does happen, when the price is met.

It is now time for the agenda as we look at stories shaping the day.

My agenda, something craig moffett lives and breathes -- who was the big winner in 2013

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


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