Poor quarterly results for Time Warner Cable could...
Poor quarterly results for Time Warner Cable could make a takeover attempt likely, but could also leave potential buyers Charter and Liberty unwilling to pay the price of TWC’s shares, said analyst Craig Moffett of Moffett Nathanson in an email…
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to investors. TWC losses in subscribers to video, broadband and phone, plus rising programming costs, left the company’s results “just horrible,” he said. The analyst had previously said “bad news would be good news for TWC, on the idea that bad results would only make a takeover more likely. … But this bad?” TWC’s retrans negotiation with CBS also hurt its position and the entire cable industry, said Moffett. “Every cable operator now goes to the table knowing that CBS not only won the war, but left TWC badly damaged even for having fought the fight,” said Moffett. He said the TWC losses have left the company’s shareholders “more levered than ever to a takeover."