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Cox Also Interested in Time Warner Cable Bid
by Karl Bode 04:05PM Tuesday Nov 26 2013
Rumors of cable consolidation have been heated for much of the year, thanks largely to Charter board member John Malone and investors looking to cash in on the gossip-inflated stock gains. Said rumors exploded last week with a report claiming that both Comcast and Charter had contemplated a joint bid for Time Warner Cable. Now the Wall Street Journal indicates that Cox Communications is interested in joining the fun, and is also contemplating a bid for Time Warner Cable either alone or in conjunction with other cable companies:
quote:
Cox Communications is contemplating jumping into the bidding for Time Warner Cable say people familiar with the situation, either on its own or with others....Cox, which is a unit of closely held Cox Enterprises, has in the past been seen as a potential takeover candidate. But the company has made plain it is not for sale. Instead Cox is looking for opportunities to grow, said a person familiar with the situation.
It remains unclear if a joint acquisition of Time Warner Cable would be approved by regulators. Even though the companies don't directly compete, regulators may still have reservations due to the antitrust concerns surrounding broadaster and cable vertical integration (Comcast/NBC having an even larger control over the entire content, last mile ecosystem).

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mixdup

join:2003-06-28
Birmingham, AL
Reviews:
·Charter

Cox + Charter

I don't see Cox and Charter having trouble going after TWC. If Comcast is eliminated from the fold, all the regulatory issues go out the window. Comcast, as it stands now, would still be bigger than a combined Cox + TWC or a combined Charter + TWC, by a long shot (Cox+TWC=16.7m, Comcast now=21.9m). Also, Cox, Charter, and TWC don't own any meaningful content. I think you could even get away with Cox, Charter, and TWC combining into one company (20.9m) which would only then be approaching Comcast and DirecTV in terms of video subscribers.
jjeffeory

join:2002-12-04
USA

1 edit

Re: Cox + Charter

Cox has a better product than TWC or Charter, but it makes less sense from an integration standpoint to me. TWC and Charter are in some physically close or adjacent areas in many parts of the country. Cox and TWC are a little further apart in areas.
TBBroadband

join:2012-10-26
Fremont, OH

Re: Cox + Charter

The only real area Cox is near TWC is in The NEO/WPA market. Cox could easily connect to that system. But it's a mess. TWC and Adelphia all shoved together with no real full system. If you're in the actual TWC area you're good, in the old Adelphia region in an area of $900,000+ homes and high incomes, TWC treats ya like crap there for being in the step-child system.
dragonman300

join:2011-03-02
Anaheim, CA
kudos:1
Reviews:
·Frontier Communi..
·Time Warner Cable
·Dish Network

Re: Cox + Charter

lol, what about SoCal? In Los Angeles area(Long Beach, Lakewood, La Habra area), they have Charter. In Orange County, we have Time Warner in north area(Anaheim, Santa Ana, Garden Grove area) AND Cox in South area(Tustin, Irvine, Mission Viejo area). Adelphia used to serve our area and it was the mess too. We have different cable system headends just few miles apart. I'm pretty sure Charter and Cox would fight over SoCal lol
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unoriginal
Premium
join:2000-07-12
San Diego, CA

Re: Cox + Charter

Cox also has service in all of San Diego county as well except for the northern half of the city of San Diego itself. And I don't have to go far to be a customer again. I went from Cox to TWC just by moving north across the freeway a few years ago.
jjeffeory

join:2002-12-04
USA
They're closer together in SoCal. Also if you take a regional perspective, Cox is in Las Vegas and San Diego. Maybe another city or two that I'm not thinking of right now.
TBBroadband

join:2012-10-26
Fremont, OH
Regulatory issues again with Comcast wouldn't have any issues with their Cable Unit. They operate differently from the content properties with Comcast. The same as TWC did with TWE.

I don't see Cox being able to take on the entire TWC company though. Especially since not long ago Cox spun much of its network off and into what is now Suddenlink. Cox should team up with another company and gut TWC into two companies or even three. It would make the company more manageable all across the board. I'm sure that Zito Media would be interested in getting back much of their old Adelphia properties before they were purchased by TWC and Comcast though. But they have re-purchased some of those areas from TWC.

mixdup

join:2003-06-28
Birmingham, AL
Reviews:
·Charter

Re: Cox + Charter

said by TBBroadband:

Regulatory issues again with Comcast wouldn't have any issues with their Cable Unit. They operate differently from the content properties with Comcast. The same as TWC did with TWE.

Time Warner Cable never reached any appreciable size while they were under Time Warner that would have caused any regulatory issues. Comcast's size with Time Warner Cable makes it's vertical integration an issue. It doesn't matter if they're in a separate division within Comcast. Corporate organization has no impact on it.
TBBroadband

join:2012-10-26
Fremont, OH

Re: Cox + Charter

Vertical integration isn't an issue here though. No real threat is being made to anyone. This doesn't even fall into an anti-trust issue as you will still be left with the same players as before. Comcast and TWC never competed, never will. The same as SBC with BS. They never competed so it worked just fine. Plus TWC recently was allowed to take on Insight which in some areas, YES they did in fact compete. But nothing was said about it.

This deal should go through with Comcast and TWC without a problem and very little issues for both. The most they could see is a deal being "forced" on Internet for a basic speed and price being offered for X amount of years. That's basically it.

ITALIAN926

join:2003-08-16
kudos:2

1 recommendation

Re: Cox + Charter

Of course it goes through without any problems, these same regulators approved the cable/VZ spectrum deal ! lol
I believe these deals are truly determined by a coin toss.
TBBroadband

join:2012-10-26
Fremont, OH

Re: Cox + Charter

It's a two headed coin in most cases. But I don't see why we need to regulate at all like many call for. I don't see we line share needs to be a forced issue or forced fiber build outs. Overbuilding is alive and happening once again, if those select few don't like their choices, they're free to go else where including move to a "fiberhood" of Google's and maybe hope they'll get fiber in the next 10 years.
ajwees41
Premium
join:2002-05-10
Omaha, NE
Cox is still pretty big don't think they spun off that much. It was only 2 areas.

mixdup

join:2003-06-28
Birmingham, AL

Re: Cox + Charter

Cox is approximately the same size as Charter, in terms of number of subscribers.
TBBroadband

join:2012-10-26
Fremont, OH
Cox spun off a great deal of their network. It was well over 15 markets. Many of them were in WV and NC.

dvd536
as Mr. Pink as they come
Premium
join:2001-04-27
Phoenix, AZ
kudos:4

OH HELL NO!

please!
tmc8080

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

Re: OH HELL NO!

You asked? Here you go...

»www.youtube.com/watch?v=i6q-6Rro ··· -6RroaJA

OSUGoose

join:2007-12-27
Columbus, OH

Go Ahead

Combine together al la AT&T, but only if the regulators put some teeth into improving services and such. I'm fine with 1 or 2 national cable companies so long as the regulators actually do their jobs and have regulations with teeth, so basically......never.

FreeBSDuser

join:2013-05-15
Somers, NY

Re: Go Ahead

This is what happens in the UK. 95% of the UK has one cable company, Virgin Media. But then the market is regulated.

OSUGoose

join:2007-12-27
Columbus, OH

Re: Go Ahead

That's what i was alluding to, but dident want to stir the socialism pot on here.
TBBroadband

join:2012-10-26
Fremont, OH
Why do you need regulation with one two cable companies? They don't compete. You still have the TeleCos for IPTV, Phone and HSI and you have DBS for TV and a few over builders. Merging two non-competing companies in the same industry is fine a non-anti trust issue.
eco
Premium
join:2001-11-28
Wilmington, DE

Re: Go Ahead

Because technically speaking the cable companies operate by franchise agreements in most places. If a franchise area becomes dissatisfied with the cable company, they could theoretically not renew the franchise agreement when it expires and go with someone else. With only one or two cable companies in an unregulated environment this becomes almost impossible.

For instance in my small beach town we have service from Comcast. Most of the areas around us are served by Atlantic Broadband. Our cable system here had been pretty neglected and when the franchise agreement expired 8-10 years ago the town threatened to not renew the agreement and turn the cable system over to Atlantic (or whatever it was called at the time) or someone else unless they performed some major upgrades. Comcast did them and their franchise agreement was renewed. This wouldn't be possible with less competitors in the market.

swintec
Premium,VIP
join:2003-12-19
Alfred, ME
kudos:6
Reviews:
·Time Warner Cable
·VoicePulse
·Sprint Mobile Br..
·RapidVPS

1 recommendation

Re: Go Ahead

said by eco:

the town threatened to not renew the agreement and turn the cable system over to Atlantic (or whatever it was called at the time) or someone else

The town couldnt just give the cable plant to someone else. it would have to be sold and you better hope there is a buyer that would be interested.
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TBBroadband

join:2012-10-26
Fremont, OH
You can't just take something from someone. That is a HUGE myth that BBR readers like to think and go off when unhappy with a provider. Those providers PAYED to lay that network and operate it.

Also your city is free to work with ANY other company and overbuilding to bring someone else in and create a 2nd company - and it should be a private company- WOW, RCN, etc- NOT a muni. Nobody stops these towns that cry over not having something from bringing in an over-builder. The fact is; if one company doesn't want you, nobody else is either; especially over-builders.

And an FYI- You could have Comcast, in your area but if you do not have a TWC location near by- chances are they wouldn't even be interested in moving in. The numbers would NOT make sense for them. And nobody else would consider that either. And again, cable companies do not compete against each other. So there is not a competitive market there.

skuv

@rr.com
It's still possible for them to not renew the franchise agreement and run the cable system themselves or pay someone else to run it.

It happened to TWC in NC in one of the counties it covered. The county didn't renew the franchise agreement and TWC sold all of the infrastructure to the county to run it. I have no idea if the county did a better job or not, but they got what they wanted.

Orthos

@charter.com

Cable Consolidation

I think you will probably see all the cable companies get in on this. There will be system swaps all across the country as everyone consolidates their clusters. The spoiler will be if a non cable company jumps in and runs up the price. Google,Verizon,Apple,Intel...
TBBroadband

join:2012-10-26
Fremont, OH

Re: Cable Consolidation

Google? LMAO! Thanks! And Telecos used to run cable companies- Ameritech ran Americast. AT&T rand AT&T Broadband. Nothing new there at all.

atuarre
Here come the drums
Premium
join:2004-02-14
Conroe, TX
Google won't run up the price. They'll spin it off to some other company after losing interest, and the new owners will raise up the price.
rody_44
Premium
join:2004-02-20
Quakertown, PA

I dont see comcast getting in on this.

I dont see comcast being a major player at all. If they were going to go after anyone it would be cablevision.

Termites

@cox.net

comcast all the way

Comcast ,i hope they win this bid if not the Cable Users are screwed.