Telecom Stocks in Focus as Charter Communications Acquires Time Warner Cable and Bright House

Strategic Insights -

Charter Communications has finalized agreements to acquire Time Warner Cable and Bright House Networks, creating a merged entity that will serve 23.9 million customers across 41 states. This move marks a significant development in the ongoing consolidation trend in the US cable TV industry. Meanwhile, Comcast's 14-month-long negotiation of a $45.2 billion takeover deal for Time Warner Cable has been terminated due to regulatory hurdles. Additionally, Cablevision Systems Corp. has filed a lawsuit against Verizon Communications, accusing the company of making false claims about its FiOS service.

Key Takeaways:

  • Charter Communications' acquisition of Time Warner Cable and Bright House Networks for $78.7 billion and $10.4 billion, respectively, creates a merged entity serving 23.9 million customers across 41 states.
  • The acquisition may face scrutiny from the Federal Communications Commission (FCC) due to concerns over market share.
  • Comcast's $45.2 billion takeover deal for Time Warner Cable was terminated after 14 months, citing strong reservations from the FCC and the Department of Justice.
  • Cablevision Systems Corp. has filed a lawsuit against Verizon Communications, alleging false advertising claims about its FiOS service.
  • Qualcomm has signed agreements to repurchase $5 billion of its common stock through accelerated share repurchase plans.
  • AT&T plans to launch the LG G Pad F 8.0 tablet, available with 20 monthly payments of $12.50 or a two-year contract for $149.99.
  • United States Cellular Corp. has announced pre-orders for the LG G4 smartphone, available at zero upfront payment with 20 monthly payments of $29.50-$30.50.

Statistics:

  • The merged entity of Charter Communications, Time Warner Cable, and Bright House will serve 23.9 million customers across 41 states.
  • Charter's acquisition sets a total value of $78.7 billion and $10.4 billion for Time Warner Cable and Bright House, respectively.
  • Comcast's terminated takeover deal for Time Warner Cable was valued at $45.2 billion.
  • Qualcomm's accelerated share repurchase plans aim to repurchase $5 billion of its common stock.

Sources:

  • Zacks Investment Research, May 29, 2015, (Zacks.com via COMTEX)
  • Charter Communications' press release on Time Warner Cable acquisition
  • Verizon Communications' press release on FiOS claims
  • Qualcomm's press release on share repurchase plans
  • AT&T's press release on LG G Pad F 8.0 launch
  • United States Cellular Corp.'s press release on LG G4 pre-orders