Charter to buy Time Warner Cable

[JayFarrar]

I can only assume that Charter went couch diving for quarters to put together a $55.33 billion deal to buy Time Warner Cable. When the point is $330 million, that's some real money.

http://www.nytimes.com/2015/05/27/b...quire-time-warner-cable.html?smid=tw-bna&_r=0

So much for cord cutters ruining the value of cable companies.

 

[Rusty Shackleford]

Charter is the devil.

 

[Batman]

Time Warner just had its merger with Comcast shot down over antitrust concerns. Now it's trying to merge with Charter?
A merger between Nos. 1 and 2 in the industry is awful, so let's see if we can sneak a merger between Nos. 2 and 3 past the watchdogs?
What am I missing here that makes this deal more palatable than the one that was nixed just weeks ago?

 

[DanOregon]

Probably because the deal would make the no. 2 carrier more competitive with Comcast, not less so under the Comcast/TW plan.
1. Comcast 22m. 2. TW 11m 3. AT&T 6m 4. Verizon FIOS 5.5 m 5. Cox 4.4 m. 6. Charter 4.3m.

Didn't realize how many small cable outlets are still out there.

 

[SnarkShark]

So Charter is significantly smaller and bought the No. 2 cable company in the country?

 

[The Big Ragu]

So Charter is significantly smaller and bought the No. 2 cable company in the country?

Welcome to the casino world created by your Federal Reserve. With interest rates suppressed at zero the last 7+ years. ... plenty of "free" money around to gamble with. Let's have a party! We have had share buybacks to manipulate stock prices. Dividends galore. And now M&A activity -- borrow, borrow, borrow to create false prosperity.

There will be $76 billion in debt on the books of the new Charter. It's all so wonderful with the assumption that interest rates will always be zilch -- it costs nothing to be in debt over your head, because we live in fantasy world -- the Fed has your back. So load up on debt and do some deals.

It's not like that might end badly, though, is it? I mean, it's not like the lack of liquidity the Federal Reserve has created in the debt markets might end with a panic or anything, when a few sellers realize there are no buyers, and we get a stampede sending rates skyrocketing? If / when that happens, it is going to make the mortgage defaults in 2008 / 9 look quaint. And Charter (among lots of others) is going to drown in that debt.

 

[RecoveringJournalist]

I keep hearing that Google is going to put out a TV package that will demolish the competition. I think they're testing it now, but it seems like there's been buzz about this for a couple years now. I hope it happens.

 

[DanOregon]

The cable companies are now more valued for their broadband than for their TV properties.

 

[The Big Ragu]

The cable companies are now more valued for their broadband than for their TV properties.

You are very correct. As they should be -- broadband is the future of what they do. Otherwise, they will become obsolete. It has been happening pretty quickly. During its earnings call on Monday, Neil Smit of Comcast, which is the largest cable provider in the country, said that for the first time, the company has more Internet subscribers than cable subscribers.

 

[93Devil]

Welcome to the casino world created by your Federal Reserve. With interest rates suppressed at zero the last 7+ years. ... plenty of "free" money around to gamble with. Let's have a party! We have had share buybacks to manipulate stock prices. Dividends galore. And now M&A activity -- borrow, borrow, borrow to create false prosperity.

There will be $76 billion in debt on the books of the new Charter. It's all so wonderful with the assumption that interest rates will always be zilch -- it costs nothing to be in debt over your head, because we live in fantasy world -- the Fed has your back. So load up on debt and do some deals.

It's not like that might end badly, though, is it? I mean, it's not like the lack of liquidity the Federal Reserve has created in the debt markets might end with a panic or anything, when a few sellers realize there are no buyers, and we get a stampede sending rates skyrocketing? If / when that happens, it is going to make the mortgage defaults in 2008 / 9 look quaint. And Charter (among lots of others) is going to drown in that debt.

No one was doing this with home lending rates circa 1999-2007. That was all fine and good.

At least now it won't be John Q. Publicn and Teddy Bluecollar left in shatters on the side of the road while a very small few collect bonuses.

 

[Donny in his element]

I keep hearing that Google is going to put out a TV package that will demolish the competition. I think they're testing it now, but it seems like there's been buzz about this for a couple years now. I hope it happens.

Google Fiber started in Kansas City, on both sides of the state line, in mid-2013 and continues to buildout in the suburbs. I've been a subscriber and it's pretty great when compared to Time Warner and Comcast/Xfinity.

Fiber is also now in Austin and Provo and I think Google just announced seven more markets it's expanding to.

 

[RecoveringJournalist]

Google Fiber started in Kansas City, on both sides of the state line, in mid-2013 and continues to buildout in the suburbs. I've been a subscriber and it's pretty great when compared to Time Warner and Comcast/Xfinity.

Fiber is also now in Austin and Provo and I think Google just announced seven more markets it's expanding to.

Do you know what the cost is?

 

[RecoveringJournalist]

Based on where I live, Google Fiber will probably be here in 2025.

 

[Donny in his element]

Do you know what the cost is?

Basic Internet is free after $300 installation fee ($25/month for a year).

Gigabit internet is $70/month. Install fee waived, or pro-rated if cancelled within year.

Internet + TV is $130/month with fee waived. That includes DVR, smart boxes, terabyte of storage, etc.

Hello, Kansas City – Google Fiber

 

[Donny in his element]

Based on where I live, Google Fiber will probably be here in 2025.

Beyond KC, Austin, Provo, next up are Atlanta, Charlotte, the Triangle, Nashville, SLC.

More to come, though.
Google Fiber

 

[JayFarrar]

U-verse, with 200 channel package plus basic interwebs is around $125.

But that doesn't include what they charge for HBO, DVR, etc. I'd be curious to know how Google Fiber charges for the extras but it doesn't matter as my town isn't anywhere close to getting it added as an option.

The same people who rub their hands in glee that cable companies and their bundles might be going away seem to be the same the tech evangelists who root for the demise of newspapers and magazines.

 

[RecoveringJournalist]

I've heard it's different in certain areas, but U-verse where I live (medium-sized city) charges a couple hundred to come out and install everything, something Dish and DirecTV have done (at least for us) for free.

Google Fiber has some crazy DVR that holds a couple terrabytes of data. I'm not sure how much my Dish DVR holds, but I'm fairly certain it's nothing close to that.

 

[Donny in his element]

Got HBO and Showtime packages for $15 total w/ Google Fiber. No HBO Go (or AMC) on Google yet.

 

[TheSportsPredictor]

And now AT&T eats them all up:

AT&T to buy HBO, CNN, and the rest of Time Warner for more than $80 billion

 

[lcjjdnh]

And now AT&T eats them all up:

AT&T to buy HBO, CNN, and the rest of Time Warner for more than $80 billion

Different companies.