Rivals Circle Time Warner Cable for Possible Takeover

Apparently, Time Warner Cable has reached out to Comcast to discuss a possible combination in recent months, in an effort by Time Warner Cable to head off a bid from Charter Communications and its largest shareholder, Liberty Media.

The two companies aren't in "active discussions" but the two companies have had similar discussions off and on over the past several years. A combination of Comcast and Time Warner Cable would likely undergo intense regulatory scrutiny, as Comcast is the No. 1 cable operator, serving nearly 22 million television subscribers while Time Warner Cable is the second biggest, serving more than 11 million. Charter Communications is nearing an agreement with banks to borrow money for a bid for Time Warner Cable. Cable operators don't directly compete with each other, however, and the Federal Communications Commission doesn't have a limit on how big cable operators can be. There likely would be antitrust obstacles, however, particularly given the leverage a Comcast-Time Warner Cable would have over content providers and in the market for broadband.

(Nov 22)