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:

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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

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