dslreports logo
site
spacer

spacer
 
   
spc
story category
Cox E-mail to Employees Denies Sale Rumors
by Karl Bode 10:29AM Monday Aug 05 2013
As I've been noting recently, cable industry mainstay John Malone has been telling anyone who'll listen that the cable industry needs to consolidate further, with his new 27% stake in Charter driving his ambition to have Charter acquire either Cox or Time Warner Cable. There has been endless anonymous leaks to the press seeming to confirm this narrative, most likely coming from within the Malone camp.

The rumors have resulted in a series of stock spikes for all companies involved, resulting in the trading of several industry stocks being halted for "volatility." Still, it's not clear that the talks have been anything but the rudimentary variety, with Charter likely doing most of the talking. Time Warner Cable specifically has made it clear they're more interested in acquiring other companies than being acquired.

Several Cox insiders have forwarded me an e-mail by Cox President Patrick Esser that was recently sent to all Cox employees. In it, Esser denies having himself specifically met with Charter to discuss a deal, though if you carefully parse the language, it's phrased in just such a way as to not entirely rule out that talks have occurred:
quote:
From: Pat Esser Pat.Esser
Date: August 2, 2013
To: ! CCI - Mail Users Nationwide
Subject: Acquisition rumors
You may have seen or heard reports and speculation in the cable industry regarding Liberty Media’s recent investment in Charter Communications and the company’s interest in acquiring other cable companies. As with any industry, mergers, acquisitions and strategic investments occur from time to time and the press often speculates on potential scenarios when rumors emerge.

One recent report even says that I have met with representatives from Liberty Media and Charter to discuss a merger. This is not true. While our standard policy is to not comment in the press on rumors related to mergers and acquisitions, the media continues to persist with these rumors and I felt it important to let you know that they are just that – rumors and speculation.

What we do know—thanks to your work and that of the entire CCI team—is that we are well-positioned for long-term success and we’ll continue our journey, together. On behalf of the senior team, thank you for remaining focused on the great work you do each day to deliver the Cox experience to our millions of customers.

Sincerely, Pat
In other words: "get back to work, nothing to see here."

view:
topics flat nest 

88615298
Premium
join:2004-07-28
West Tenness

denial means rumor is true

Just like when a coach gets a "vote of confidence" by a GM or owner. You know he's about to be fired.
nola504

join:2012-12-22
New Orleans

Crosses fingers

Please be true. Even though I'm frustrated with the way Cox has handled their upgrade in the New Orleans market. They have provided me with great service for almost 10 years and have been very reliable.

exocet_cm
Free at last, free at last
Premium
join:2003-03-23
New Orleans, LA
kudos:3

Re: Crosses fingers

said by nola504:

Please be true. Even though I'm frustrated with the way Cox has handled their upgrade in the New Orleans market. They have provided me with great service for almost 10 years and have been very reliable.

Same here. I really like their service in New Orleans. I hope it doesn't get screwed.
--
"All newspaper editorial writers ever do is come down from the hills after the battle is over and shoot the wounded." - Bruce Anderson
"I have often regretted my speech, never my silence." - Xenocrates
Check out my blog: »www.johndball.com
LTE4LIFE

join:2013-02-28
I thought Suddenlink had bought out Cox?!? I guess they had only bought up some of their markets..

exocet_cm
Free at last, free at last
Premium
join:2003-03-23
New Orleans, LA
kudos:3

Re: Crosses fingers

said by LTE4LIFE:

I thought Suddenlink had bought out Cox?!? I guess they had only bought up some of their markets..

As a whole? No, but I think Suddenly-disconnected bought a few of Cox's markets in CENLA. I wish Cox would move into the CENLA region so my folks could get a decent ISP.
--
"All newspaper editorial writers ever do is come down from the hills after the battle is over and shoot the wounded." - Bruce Anderson
"I have often regretted my speech, never my silence." - Xenocrates
Check out my blog: »www.johndball.com

atuarre
Here come the drums
Premium
join:2004-02-14
Conroe, TX

Re: Crosses fingers

Suddenlink acquired everything from Lake Charles, Central Louisiana, and North Louisiana. Cox kept Lafayette, Baton Rouge, New Orleans and the area that surround those places.

OSUGoose

join:2007-12-27
Columbus, OH

Re: Crosses fingers

And then WOW bought SuddenLink.

DaSneaky1D
what's up
Premium,MVM
join:2001-03-29
The Lou

Rumors happen around every quarterly announcement

Nothing to see here, move along and let the industry speculators have their cake.
Hoss
Sauters A Walrus

join:2000-10-05
Tulsa, OK

It's likely here...

...that Malone backhandedly planted a story like this to get the ball rolling.
Oedipus

join:2005-05-09
kudos:1

Textbook effort by Pat.

Paragraph 1: There's nothing wrong with mergers. They happen all the time in our industry. Please ignore the obvious question of why I would defend the merger process if we're not going to actually do any merging.

Paragraph 2: Now that your fears have been assuaged, I have not met with anybody to discuss the merger. My flotilla of lawyers and other executives, however, have. I was also involved with these meetings via Telepresence.

Paragraph 3: Deflect deflect deflect. Good job everybody, don't worry about what you just read. Keep up the good work.

Beautiful effort by Pat, but it's too short to be effective at stemming the tide. Prepare for a merger, people....
TWCcdman

join:2002-04-14
Kernersville, NC

heard that before

Bellsouth also denied similar rumors and we all know what happened to Bellsouth

SteelerRaw

@level3.net

S.O.P.

Deny, deny, deny....right up until the sale/merger is publicly announced.

n2jtx

join:2001-01-13
Glen Head, NY

Re: S.O.P.

said by SteelerRaw :

Deny, deny, deny....right up until the sale/merger is publicly announced.

Indeed. I will not be surprised to see a sale announced on this site sometime before the end of summer along with a mind blowing payout to Patrick Esser for his "good work".
--
I support the right to keep and arm bears.

Optimus2357
Premium
join:2010-11-21
West Warwick, RI
kudos:3

Fact check?

Does anyone have any hard data on the supposed talks? Where they happened, who was there, etc? Speculation is all well and good, but I would be interested in any good press resources anyone else finds. One should consider the possibility that they had minor initial talks (which probably happens more often then we know) and Charter went public with it to create leverage in both their negotiation with other networks and content providers. I really don't want Charter and have a great deal with Cox now, so I am open to other possibilities, how ever unlikely.
amungus
Premium
join:2004-11-26
America

good news everyone

Glad it's just a rumor. Stay a privately held company.
Internet has almost always been good here..

Phase

@cox.net

There goes Cox...

Good lord, I hope this isn't happening. If it IS true, I hope that Cox's support (so far it's been fantastic, at least compared to AT&T that I had to deal with before) doesn't get flushed down the tubes by Charter. I'm not too optimistic.