Cable Magnate Malone's Stakes Scrutinized in Charter-TWC Deal

John Malone amassed a cable fortune decades ago, sold the holdings for billions of dollars, and went on to build a media empire with reach into pay-TV, movies and satellite radio. Now Malone’s sprawling interests are being scrutinized by US regulators reviewing the deal he helped broker to merge Time Warner Cable and Charter, where he is a leading shareholder, to create the second-largest US cable company.

“It’s hard not to think about Malone when you think about Charter, about all Malone’s entanglements,” said Rich Greenfield, an analyst with New York-based BTIG. “This is one of those challenges they have to get past.” The Federal Communications Commission sent queries asking for details about Malone’s holdings in companies including Discovery Communications and premium-video supplier Starz, which supply programming to Charter rivals such as AT&T’s DirecTV and Dish Network. The FCC ’s letters to three corporations that list Malone as chairman -- Liberty Media Corp., QVC shopping site owner Liberty Interactive Corp. and Charter investor Liberty Broadband Corp. -- asked for a response by Nov 16 about his sway over Charter, Time Warner Cable, DirecTV, the Liberty entities, Discovery and Starz. The agency wants to know about plans for online delivery of shows, and whether Malone has incentives to act for and against the enlarged Charter.