Charter Sees TWC Merger Creating $30B Cable Behemoth

Charter Communications estimates a merger with Time Warner Cable will create a 15.6-million subscriber cable powerhouse with $30 billion in annual revenue and cash flow of $10.9 billion, according to documents filed with the Securities and Exchange Commission Tuesday.

Charter made a $132.50 per share ($61.3 billion) offer for Time Warner Cable on Monday, a bid that the second largest MSO rejected, calling it “grossly inadequate.”  However, TWC did say that although it was not for sale, it would accept an offer for the entire company for $160 per share, or about $72 billion.

Charter plans to hold a conference call to discuss the matter Tuesday at 4:30 p.m. Prior to the call the company released its presentation documents in an SEC filing.

Charter plans to use its tried and true operating strategy --- boosting video offerings, high-speed data speeds and converting its plant to all-digital – to help accelerate TWC’s operating growth. Although nearly three times larger than Charter, TWC has faltered in the past few quarters, losing 304,000 video customers in the third quarter and announcing earlier this month that fourth quarter loses will reach 215,000 video customers.

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