Report: Charter Hires Goldman Sachs to Pursue Time Warner Cable Bid

By Matt Egan Mergers and Acquisitions FOXBusiness


John Malone can’t take “no” for an answer.

Continue Reading Below

Charter Communications (CHTR), which is 27% owned by Malone, has hired Wall Street titan Goldman Sachs (GS) to pursue a potential buyout of Time Warner Cable (TWC), Bloomberg News reported.

The apparent signing of Goldman comes despite the fact that the No. 2 U.S. cable operator already rejected takeover overtures from Malone earlier this year because the proposal didn’t offer a premium, Bloomberg reported. It's not clear what price Charter offered in prior negotiations. 

Both Time Warner Cable and Charter declined to comment on the report. 

Shares of New York-based Time Warner jumped 2.70% to $119.46 on the news, leaving the stock up 20% on the year and at their best level since July 2007.

Stamford, Ct.-based Charter advanced 2.83% to $128.09, extending its 2013 surge to 68%.   

Continue Reading Below

A tie-up would be intriguing, especially because Time Warner Cable is more than twice as valuable by market capitalization as Charter: $33 billion compared with Charter’s $12.6 billion.

But Charter has Malone, who has a personal net worth of almost $7 billion, in its back pocket.

Liberty Media (LMCA), Malone’s $17 billion holding company, is exploring a range of options to finance a merger, Bloomberg reported.

Malone has been using Charter, which he acquired a stake in in May, as his vehicle to rebuild a formidable U.S. cable business.

What do you think?

Click the button below to comment on this article.