Merger rumors continue in Cable Industry

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According to sources, privately held Cox Communication is considering jumping into the bidding for Time Warner Cable Inc (TWC).

The news that the 3rd largest operator Cox is interested in Time Warner comes on the heels of news that Charter Communications (CHTR) and Comcast (CMSA) were considering a joint bid for pieces. John Malone's Liberty Media (LMCA) owns part of Charter Communications and has been trying to swing a deal to turn Charter Communications into a more major player in the industry.

As bandwidth pipes get larger and content providers such as Netflix (NFLX), and Amazon (AMZN) offer video services compelling more customers to disconnecting their cable, there has been a renewed sense of urgency to do something different in the cable industry. Malone believes that cable has the cheapest path to 1gbps of all existing technologies including competitors like Google (GOOG) Fiber and Verizon (VZ) FIOS and that going forward scale will protect them and that at the very least cable will continue to be the pipeline to those video services even if it isn't the primary provider of them.

InvestCorrectly Staff
InvestCorrectly Staff

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