Who Will Win the Fight for Time Warner Cable?

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Dec. 23 (Bloomberg) –- Mediamorph Co-Founder & Chairman Shahid Khan and Bloomberg’s Alex Sherman and Adam Johnson discuss the possible sale of Time Warner Cable with Trish Regan on Bloomberg Television’s “Street Smart.” (Source: Bloomberg)

The highest price theoretically wins here.

The company has said it would like to see somewhere around $15 0. what is it really going to take to get the deal done, and is anyone there?

I wrote that story about rob marcus.

His point was that he is concerned about value creation.

The question is, how much more value creation will time warner have in its operation that cannot be engineered through financial tricks like buying back shares, etc.? the question right now is, can they do it themselves, or would they be better off to sell to charter communications or potentially another company out there?

Greg so is he not interested in a sale at any price?

He thinks there is more opportunity in the company itself.

Where did they need to be?

If you look at other cable bills that have happened, typically it goes about 8 times, maybe a little more ebitda.

The initial offer from charter we here will come in at about $135. that is quite a bit that it needs to creep up there.

However, we will see.

I've saved the thought about creating value, because i want to get back to that.

In terms of pricing, any chance comcast and cablevision would be willing to walk up $150 a share?

My forecast is that it will be accommodation of companies it actually come in and offer a joint bid, most likely comcast and charter.

You never start off with a high bid.

I agree with alex, i think it will end up near an 8.5 multiple.

I believe it is prudent for charter to harder with comcast.

Where does rob actually see the value creation?

What does he think is in time warner's future to get it to a level he would want to take it out at?

More and more people using broadband.

The second thing is business services.

Cable companies have started to tap into small and medium-sized businesses, hooking them up with voice, internet, phone, and managing their data.

They can get into the cloud services business.

Time warner cable has made several acquisitions into this a sad it is possible that cable companies could get into the larger businesses.

There is potentially billions of dollars of revenue growth there.

Those are the two main aspects that any cable company sees as major growth cap ways at this point.

Adam, you have been looking at the most hated companies in america, and it isthat cable companies, including time warner cable, had a lot of frustrated customers -- no surprise they are in that group.

When you call the cable company and try to get help, you get put on hold.

That is typical.

Look at this, the most disliked companies in the country, long island power authority, there is time warner number two.

Curious that facebook and linkedin are on here.

Apparently customers are unhappy about the move to monetization.

They like the services, they just don't want to have ads put in.

Time warner cable is the second most disliked company.

I am amazed that facebook is number three.

You inspected with the cable companies, but not necessarily with facebook or linkedin.

What is the timetable?

When will we know for certain whether they will get a deal done?

There is definitely a progression here.

We will get that initial bid from charter probably very early into the new year.

At that point, charter will make a decision whether they want to elect a board of directors to try to get on this theoretical new company that would be a merged company between charter and time warner cable.

At that point, the shareholders will probably get involved to push along the deal that may be the eventual pathway this thing takes.

If i am the ceo, i will say it has been a good run, if they can keep it up.

There was the trend, and look at what has happened over the past 12 months.

This thing has gone vertical, which tells you that in spite of that survey, people think it is a good deal.

Coming up, the road to a

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


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