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Could Time Warner Cable and Charter Merge?
Stock Jock Moffett Seems to Think So...
by Karl Bode 03:16PM Wednesday Jun 26 2013
The cable industry's most frequently quoted stock jock believes that John Malone's recent decision to acquire a 27% stake in Charter is a prelude to bigger deals, most notably an attempted merger between Charter and Time Warner Cable. "If you’re going to do a transformational deal, your choices are Time Warner Cable, Time Warner Cable and Time Warner Cable," Craig Moffett tells Bloomberg. "You can roll up all the little guys if you want to, but even if you did, you haven’t built something that’s truly large scale." Everybody agrees that Malone's goal is to consolidate the cable industry further and make Charter larger, though most analysts believe Charter will pursue smaller operators first -- such as Mediacom, Cable One or both.

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elefante72

join:2010-12-03
East Amherst, NY

Transformational

Transformed into higher prices, lower internet speeds, and circa 1980 cable boxes. Sounds great!!!

moldypickle

join:2009-01-04
Haughton, LA
kudos:3

Re: Transformational

That's funny, my brother just got a DVR for his g/f on TW and when I seen it, I had to laugh. They are still using the exact same SA dvr box that I had almost 10 years ago

Dude111
An Awesome Dude
Premium
join:2003-08-04
USA
kudos:13

 

quote:
That's funny, my brother just got a DVR for his g/f on TW and when I seen it, I had to laugh. They are still using the exact same SA dvr box that I had almost 10 years ago
Yea too bad they arent still using SARA,i would still be interested in watching cable TV!!!

88615298
Premium
join:2004-07-28
West Tenness
Explain how a merger does that since neither one competes with the other. They compete with DirecTv, Dishnetwork and possibly either FiOS or U-Verse. So that's 2-3 competitors right there.
neufuse

join:2006-12-06
James Creek, PA

wall?

just throwing stuff at the wall to see what sticks now is being an analyst?......
Crookshanks

join:2008-02-04
Binghamton, NY

Re: wall?

Yep. They have the same job requirements as Cable News Anchors and Political Pundits.
Chubbysumo

join:2009-12-01
Superior, WI
Remember, the only difference between screwing around and science is writing it down.

trparky
Apple... YUM
Premium,MVM
join:2000-05-24
Cleveland, OH
kudos:2
Hell, a monkey throwing feces would be better at predicting this stuff than Moffett.
--
Tom
Tom's Tech Blog

Pashune
Caps stifle innovation
Premium
join:2006-04-14
Gautier, MS
Reviews:
·Vonage
·CableOne

Please don't.

Just.. hell no. CableOne's tier chanages and technical support have been top notch and since they're a smaller based operation, I actually don't have to wait hours on tech support and they respond to my emails in a timely manner. Yeah we still have soft caps but no overages and they don't even nag you to upgrade until you've exceeded your cap at least 3 times in a year's time.

I'd hate to deal with the scum that is Charter.
--
CableOne 50/2
rradina

join:2000-08-08
Chesterfield, MO

Re: Please don't.

Regarding Charter, I think it depends on where you live. Perhaps it was because the corporate HQ used to be here, but I've had Charter since the late 90s and for at least the last 10 years, I've had darn few complaints. Of course when I have had a problem, they roll a truck and spend an incredible amount of money "troubleshooting" the problem only to realize it has nothing to do with my CPE or even my buried wire from the pedestal. (This infuriates me because those wasted expenses are factored into the rates we all pay!)

However, they eventually get solve it I never get a clear answer as to what solved it.

In the past ten years I think I've called twice. Once about a problem where they replaced everything and it still didn't solve the problem and once where I purchased a new cable modem and activating it required an hour on the phone with a tech. (Positively ridiculous!)

KrK
Heavy Artillery For The Little Guy
Premium
join:2000-01-17
Tulsa, OK

1 recommendation

Craig Moffett's Dream

I'll just drop this here....

»www.youtube.com/watch?v=0ilMx7k7mso

IowaCowboy
Iowa native
Premium
join:2010-10-16
Springfield, MA
kudos:1
Reviews:
·Verizon Broadban..
·Comcast

Re: Craig Moffett's Dream

I think you are getting more bang for your buck today than back in the '90s if you factor in the cost of a 56k dial-up provider, the cost of a phone line and you adjust it for inflation. If you do the math right, you are paying less for bit per second than you were in the '90s when you factor inflation.
elefante72

join:2010-12-03
East Amherst, NY
Reviews:
·Verizon FiOS

Re: Craig Moffett's Dream

And I had a walkman in the 90's too. And my walkman, I wish I kept it. I loved that thing, and I used metal tapes

When CD players came out they were thousands. Now you can get one at the dollar store. Technology evolves and always becomes cheaper, unless the government gets involved.

Transit prices has PLUMMETED in the last 5 years to the point that transit is a rounding error on operators budgets.

If you look at the last 20 years, the innovation has come out of the internet, the CC has only given you faster speeds. Phone, well VOIP pretty much killed that market and cable you have 2x as many commercials.

So I guess under innovation you have VOD in the last 20 years and a STB that runs an old OS and an under-powered CPU? Amazing strides. OK they have Tivo now, which is good if they stick around. Their cost model is wicked expensive tho...

Consolidation is happening because TV margins are getting squeezed and scale works for negotiating TV deals. Also the big guys have vertical integration in the value chain the others can't compete with. This is going to cause a collapse to 3-4 major cable providers, and probably 1-2 baby bells going bye bye after that happens.

IowaCowboy
Iowa native
Premium
join:2010-10-16
Springfield, MA
kudos:1
Reviews:
·Verizon Broadban..
·Comcast

Re: Craig Moffett's Dream

said by elefante72:

And I had a walkman in the 90's too. And my walkman, I wish I kept it. I loved that thing, and I used metal tapes

When CD players came out they were thousands. Now you can get one at the dollar store. Technology evolves and always becomes cheaper, unless the government gets involved.

Transit prices has PLUMMETED in the last 5 years to the point that transit is a rounding error on operators budgets.

If you look at the last 20 years, the innovation has come out of the internet, the CC has only given you faster speeds. Phone, well VOIP pretty much killed that market and cable you have 2x as many commercials.

So I guess under innovation you have VOD in the last 20 years and a STB that runs an old OS and an under-powered CPU? Amazing strides. OK they have Tivo now, which is good if they stick around. Their cost model is wicked expensive tho...

Consolidation is happening because TV margins are getting squeezed and scale works for negotiating TV deals. Also the big guys have vertical integration in the value chain the others can't compete with. This is going to cause a collapse to 3-4 major cable providers, and probably 1-2 baby bells going bye bye after that happens.

And I'm sure if Craig had his way, you would be required to buy basic cable to buy any other products (including Internet) from the cable provider. In his little world; no cable TV no Internet.
--
I've experienced ImOn (when they were McLeod USA), Mediacom, Comcast, and Time Warner and I currently have DirecTV. They are much better than broadcast TV.

I have not and will not cut the cord.

Simba7
I Void Warranties

join:2003-03-24
Billings, MT
said by elefante72:

And I had a walkman in the 90's too. And my walkman, I wish I kept it. I loved that thing, and I used metal tapes

Chrome (CrO2) tapes worked better. It depends on the deck, though.. and Dolby S really makes a difference on all types of tape.

..but.. ya..
34764170

join:2007-09-06
Etobicoke, ON
And yet we're being ripped off more than ever before and they're making ridiculous profits.

IowaCowboy
Iowa native
Premium
join:2010-10-16
Springfield, MA
kudos:1
Reviews:
·Verizon Broadban..
·Comcast

I'd rather see Time Warner eat up Charter

I live in an area that is predominately Comcast with a touch of Charter and many of the locals here say Charter is worse than Comcast.

In my opinion, Charter makes Comcast look like Verizon FiOS.

If I had my way, Time Warner would be the cable operator where I live. Hopefully Glen Britt has a Golden Parachute because the last thing I'd want to see is Charter taking over Time Warner.
--
I've experienced ImOn (when they were McLeod USA), Mediacom, Comcast, and Time Warner and I currently have DirecTV. They are much better than broadcast TV.

I have not and will not cut the cord.
ISurfTooMuch

join:2007-04-23
Tuscaloosa, AL

Re: I'd rather see Time Warner eat up Charter

Interesting. You and I must live in the same place.

And I have a friend who lives about an hour down the Interstate, in an area with Mediacom, and he tells me that they somehow make Charter look good. He says their picture quality is awful, and, on their SD channels, instead of using 4x3 SD feeds of the channels as the source, they grab the 16x9 feeds and zoom part-way in, creating a partial-letterbox effect and cutting off stuff in the process.
raIDERspeed

join:2002-07-26
Soledad, CA

basic cable

I wish Charter will sell off my area they offer basic cable here

IowaCowboy
Iowa native
Premium
join:2010-10-16
Springfield, MA
kudos:1
Reviews:
·Verizon Broadban..
·Comcast

Re: basic cable

They don't offer Internet where you are at?

I thought if you could get cable you could get Internet as they use the same lines.

Some older cable systems may not have Internet but those are dwindling as systems are getting rebuilt.

When I first moved to Springfield (MA) they had a dual cable system that I think only went up to 460 MHz on each side (HSI is in the 700 MHz range on the downstream side) and all they had was analog cable with 60 channels on each side. I think it did have a return path because you could get PPV through your remote.

We could not get HSI or digital cable until they rebuilt the system.

If that system hasn't been rebuilt, they will do so because they'll lose customers to other video providers as older systems can't handle HD or digital.
--
I've experienced ImOn (when they were McLeod USA), Mediacom, Comcast, and Time Warner and I currently have DirecTV. They are much better than broadcast TV.

I have not and will not cut the cord.
josephf

join:2009-04-26

Cablevision - Time Warner Cable Merger

The rumors are usually CV / TWC.
tmc8080

join:2004-04-24
Brooklyn, NY
Reviews:
·ooma
·Optimum Online
·Verizon FiOS

piss poor imagination

revenue is slacking due to the stalled economy and teeth are being put into service cutbacks by consumers (aka cord cutting). so, you have people with a piss poor imagination on how to stoke revenue for the cable industry through mergers. there hasn't been benefits for the consumer for any industry mergers since 2003... look how Comcast and AT&T have grown with their disrespect of the consumer on the broad stage.

the combined company would not be putting FTTP or next generation docsis on the table and advanced rollout & competition of services. prices, value and competition would not get better with cable companies merging at this point.

if meaningful docsis 3 were deployed in Qwest/CentryLink territories that could have changed the Telco's attitude towards the consumer.

just as a spark of competition might ignite in the northeast.. there are those on walls street who will want to snuff it out just as quick..
silbaco
Premium
join:2009-08-03
USA

Re: piss poor imagination

Nothing will change Centurylink's attitude. The company competes with two cable companies near me, Mediacom and Imon, and a wireless provider similar to Clearwire, yet is no more competitive or lower priced than they are in surrounding areas.

IowaCowboy
Iowa native
Premium
join:2010-10-16
Springfield, MA
kudos:1
Reviews:
·Verizon Broadban..
·Comcast

1 edit

Re: piss poor imagination

said by silbaco:

Nothing will change Centurylink's attitude. The company competes with two cable companies near me, Mediacom and Imon, and a wireless provider similar to Clearwire, yet is no more competitive or lower priced than they are in surrounding areas.

I had Imon when they were McLeod. I ended up switching to Mediacom because McLeod back then was hard to deal with. The cable rates in Cedar Rapids were kept in check by the presence of McLeod.

I ended up moving to Comcast turf in Massachusetts and my cable bill went up $20 with fewer channels.

When I was at CR Kennedy High School, some of the staff had their gripes about Mediacom and wished they had McLeod at their address. The transition from AT&T Broadband to Mediacom in CR wasn't a smooth one and the customers were caught in the middle with billing errors and such.

Too bad Comcast did not take over CR but I think they are more geared to large urban centers. The reason I say that is their are complaints here on DSLR about Mediacom. One thing I like about Comcast is they have excellent product offerings but their support is sub-par. I am thinking of getting their home automation offering.

Comcast is more aggressive at network upgrades. Where I am at was one of the first areas to get D3.

--
I've experienced ImOn (when they were McLeod USA), Mediacom, Comcast, and Time Warner and I currently have DirecTV. They are much better than broadcast TV.

I have not and will not cut the cord.
silbaco
Premium
join:2009-08-03
USA

Re: piss poor imagination

Mediacom is doing okay on speed now and honestly their caps are reasonable, but their tv offerings are lacking. Phone is a joke.

Metatron2008
Premium
join:2008-09-02
united state

Cable Internet is the TI-89 of the technology sector

34764170

join:2007-09-06
Etobicoke, ON

Re: Cable Internet is the TI-89 of the technology sector

LOL. so true.

IowaCowboy
Iowa native
Premium
join:2010-10-16
Springfield, MA
kudos:1
Reviews:
·Verizon Broadban..
·Comcast

1 edit
Cable Internet has a lot of potential ahead. I think once they shut down SD programming, they'll reclaim system capacity that can be used to deliver faster speeds. A solution for the customers that still has SD sets would be a set-top box that down converts HD programming to SD by using letter boxing. I have two TVs hooked up to DirecTV and the SD set is hooked up to the Genie but the HD set hooked up to the RVU Client. I have both set to tune HD but the SD set will show the HD channels with in letterbox format.

The problem is not the technology, it's the providers. An 8x4 modem is capable of 343 Mbps but they throttle it to 50 Mbps.

I think CableLabs is cooking up the next generation of DOCSIS that promises Gbps Internet.
--
I've experienced ImOn (when they were McLeod USA), Mediacom, Comcast, and Time Warner and I currently have DirecTV. They are much better than broadcast TV.

I have not and will not cut the cord.

mikedz4

join:2003-04-14
Weirton, WV

what about comcast and time warner joint partnership?

What about time warner and comcast not merging but creating a joint partnership for programming contracts and equipment,etc?
Matt7

join:2001-01-02
Columbus, OH

Not Charter..



Their speed tier options are worse than Time Warner.. You get 30 down or 100 down.
Jazzemt

join:2009-02-12
USA

Old News

I posted this a week ago in the Charter forum. And no credit...

antdude
A Matrix Ant
Premium,VIP
join:2001-03-25
United State
kudos:5

I hope not!!!

TWC is big enough.
eggman9713

join:2003-03-05
Richland, WA

Dear $deity$ no!

Charter has been great around here. The service is excellent for me. If TWC gets involved I can only imagine the horrors that will happen.
megarock

join:2001-06-28
Catawissa, MO

Yay

Nothing better than even less competition and yet another too big to fail company. Just what consumers need.

/sarcasm off