Investors, Malone, Bloomberg Push Hard for Cablevision Sale
New Charter chair and cable industry mainstay John Malone has recently been telling anyone who'll listen that the cable industry should consolidate
, leaking rumored acquisition talks with Cox to the press on a monthly basis (something Cox has denied
). Investors have also been itching for a cable merger or acquisition, Time Warner Cable's long-rumored acquisition of Cablevision being their most sought-after scenario.
The end result has been soaring stock prices for all companies involved and not much else. Bloomberg News
lent a hand this week by repeating investor calls for a Cablevision sale, proclaiming that now is the perfect time to sell itself to everyone from Time Warner Cable to Google Fiber:
If Cablevision can’t find a suitor in the cable industry, technology companies including Google could be interested, Guggenheim’s Nyckowski said. Google has already rolled out its own TV and Internet distribution service, Google Fiber, in several U.S. markets. "Non-traditional companies that want to get into the online video space like Google should be looking at Cablevision," she said.
Except the same thing that keeps Cablevision from growing is the same thing that keeps many companies from jumping into Cablevision's current shoes: the fact they're one of the only cable companies that competes with Verizon FiOS in most of their territory. Google in particular is focusing their deployment efforts on the lowest hanging fruit -- markets where competition has all but entirely stagnated.