gfp Posted April 30, 2015 Share Posted April 30, 2015 WSJ article on the evolving talks between Bright House, Charter and TWC - http://www.wsj.com/articles/bright-house-emerges-as-a-player-in-the-new-cable-drama-1430417568 Link to comment Share on other sites More sharing options...
Liberty Posted May 1, 2015 Author Share Posted May 1, 2015 http://ir.charter.com/phoenix.zhtml?c=112298&p=irol-newsArticle&ID=2042901 First quarter revenues of $2.4 billion grew 7.3%1 as compared to the prior-year period, driven by residential revenue growth of 6.7% and commercial revenue growth of 14.8%. First quarter Adjusted EBITDA2 grew by 4.2% year-over-year. Excluding first quarter Comcast transactions transition costs of $21 million, Adjusted EBITDA grew by 7.0% year-over-year. Capital expenditures totaled $351 million in the first quarter of 2015, compared to $539 million during the first quarter of 2014. Residential customer relationships increased by 86,000 during the first quarter, versus 112,000 during the first quarter of 2014. For the twelve months ending March 31, 2015, residential customer relationships grew by 4.5%, or 254,000. Residential primary service units ("PSUs") increased by 160,000 during the first quarter versus a gain of 206,000 in the prior-year period. Link to comment Share on other sites More sharing options...
folivera13 Posted May 1, 2015 Share Posted May 1, 2015 http://www.bloomberg.com/news/videos/2015-05-01/where-do-twc-charter-and-bright-house-go-from-here- More from Sherman Link to comment Share on other sites More sharing options...
Liberty Posted May 4, 2015 Author Share Posted May 4, 2015 http://www.wsj.com/articles/charter-expresses-interest-in-friendly-deal-talks-with-time-warner-1430678237 Link to comment Share on other sites More sharing options...
xtreeq Posted May 4, 2015 Share Posted May 4, 2015 Thanks for all the updates Liberty Link to comment Share on other sites More sharing options...
Liberty Posted May 4, 2015 Author Share Posted May 4, 2015 You're welcome. Another one: http://www.bloomberg.com/news/articles/2015-05-03/stay-tuned-for-cable-mergers-as-ceos-convene-this-week-real-m-a Link to comment Share on other sites More sharing options...
gfp Posted May 6, 2015 Share Posted May 6, 2015 Dolan talking about TWC NY assets http://www.wsj.com/articles/cablevision-ceo-pushes-for-consolidation-of-new-york-market-1430941596 Link to comment Share on other sites More sharing options...
Liberty Posted May 7, 2015 Author Share Posted May 7, 2015 Things are starting to move ... http://mobile.reuters.com/article/idUSKBN0NS2HU20150507?irpc=932 Link to comment Share on other sites More sharing options...
gfp Posted May 9, 2015 Share Posted May 9, 2015 Charter arranging loans, Liberty Broadband plans to maintain their 25% voting stake in any deal - http://www.wsj.com/articles/charter-arranging-debt-package-as-it-pursues-merger-with-time-warner-cable-1431184567 Link to comment Share on other sites More sharing options...
Liberty Posted May 18, 2015 Author Share Posted May 18, 2015 http://ir.charter.com/phoenix.zhtml?c=112298&p=irol-newsArticle&ID=2049347 Link to comment Share on other sites More sharing options...
loganc Posted May 19, 2015 Share Posted May 19, 2015 WSJ chatter that Altice looking at TWC. Altice is also in the process of buying Suddenlink: http://www.wsj.com/articles/altice-in-advanced-talks-to-buy-cable-company-suddenlink-1432064782 Link to comment Share on other sites More sharing options...
Liberty Posted May 21, 2015 Author Share Posted May 21, 2015 http://www.bloomberg.com/news/articles/2015-05-20/altice-s-emergence-alters-cable-consolidation-equation-real-m-a Link to comment Share on other sites More sharing options...
loganc Posted May 22, 2015 Share Posted May 22, 2015 http://www.reuters.com/article/2015/05/22/us-timewarnercable-m-a-altice-exclusive-idUSKBN0O71NR20150522 I am certainly not the most knowledgeable person on Altice, but it seems to me that any offer they make for TWC is going to have a very significant stock component. Given the amount of leverage at Altice, it seems to me that their may be some question as to the value of that currency. Recall that there were similar questions about the value of the CHTR stock as currency in the previous bid. It seems to me that CHTR should be in a stronger place to make a bid for TWC, especially if CHTR-Brighthouse is effectively making the bid for TWC. While we don't know the revised terms, the CHTR-Brighthouse deal was deleveraging for CHTR due to the fact that the Newhouse family (very smartly) wanted to keep significant equity in the merged entity. Obviously, I am speculating a fair amount here, but I would be curious to hear how others are thinking about this situation. Also, for a good laugh, I recommend the following CHTR short thesis: https://sumzero.com/headlines/telecom/CHTR/269-short-this-overvalued-unfocused-levered-cable-operator-on-an-aquisition-spree Link to comment Share on other sites More sharing options...
Liberty Posted May 24, 2015 Author Share Posted May 24, 2015 http://www.ft.com/intl/cms/s/0/62e8e9e4-0243-11e5-82b9-00144feabdc0.html "Some of these people added that Time Warner Cable could reach a deal with either party before the end of the long US weekend, as markets are closed on Monday for the Memorial day holiday." Link to comment Share on other sites More sharing options...
Liberty Posted May 25, 2015 Author Share Posted May 25, 2015 http://www.bloomberg.com/news/articles/2015-05-25/charter-said-to-near-deal-for-time-warner-cable-at-195-a-share Looks like charter might get it. It'll be interesting to see what kind of synergies they think they can get... Apparently: 195/share, 100 in cash. Brighthouse to be merged into Newco, EV over 80bn. Update: More details coming in. Breakup fee of 2bn, TWC shareholders can elect to take up to 115 in cash, and LBRDA will buy 5bn of CHTR stock at current price to help fund deal. Link to comment Share on other sites More sharing options...
folivera13 Posted May 25, 2015 Share Posted May 25, 2015 Hard to see LBRDA being able to come-up with the $5bn without help from Liberty Ventures or a very significant rights offering. Maybe the article didn't include other Malone entities that will help out with the $5bn? Thoughts? Link to comment Share on other sites More sharing options...
Liberty Posted May 25, 2015 Author Share Posted May 25, 2015 Hard to see LBRDA being able to come-up with the $5bn without help from Liberty Ventures or a very significant rights offering. Maybe the article didn't include other Malone entities that will help out with the $5bn? Thoughts? That's the question. I don't think they'll have any trouble raising the money, but how will be the interesting part. I'd love a rights offering at a nice discount like last time. Ted and Todd at Berkshire are certainly paying attention. Link to comment Share on other sites More sharing options...
Guest wellmont Posted May 25, 2015 Share Posted May 25, 2015 Hard to see LBRDA being able to come-up with the $5bn without help from Liberty Ventures or a very significant rights offering. Maybe the article didn't include other Malone entities that will help out with the $5bn? Thoughts? they have been talking to private equity. so I suspect there will be new investors. malone will want to make sure he keeps control. they might sell some non voting shares here. but even malone will give up some control if it means more dollars in his pocket down the road. Link to comment Share on other sites More sharing options...
jay21 Posted May 25, 2015 Share Posted May 25, 2015 Hard to see LBRDA being able to come-up with the $5bn without help from Liberty Ventures or a very significant rights offering. Maybe the article didn't include other Malone entities that will help out with the $5bn? Thoughts? they have been talking to private equity. so I suspect there will be new investors. malone will want to make sure he keeps control. they might sell some non voting shares here. but even malone will give up some control if it means more dollars in his pocket down the road. They don't even need to sell shares. Lever up and coinvest with Ventures for $1b to $2b into a pool with a 3rd party putting up the remainder. Lots of ways this can go down but I trust they will do it in a way fair to shareholders. I don't think we are going to see a massive share raise to a 3rd party. Link to comment Share on other sites More sharing options...
Liberty Posted May 25, 2015 Author Share Posted May 25, 2015 The deal has apparently been signed : Link to comment Share on other sites More sharing options...
Fat Pitch Posted May 25, 2015 Share Posted May 25, 2015 The question of synergies is at hand now. Seems like Charter's SG&A% before Malone took over was averaging 20% of revenue and now they are at ~6%. TWC SG&A% is hovering around 20%. If Malone can achieve the same cost then he is looking to pick up at least $3.2 billion. With the economies of scale he should have more bargaining power vs the content providers. That's quite of bit of market cap value he will create if you assign it a 15x multiple for a monopoly with utility-like pricing power. Link to comment Share on other sites More sharing options...
Liberty Posted May 26, 2015 Author Share Posted May 26, 2015 Call about to begin. Press release and presentation: http://phx.corporate-ir.net/External.File?item=UGFyZW50SUQ9Mjg4NDc3fENoaWxkSUQ9LTF8VHlwZT0z&t=1 http://phx.corporate-ir.net/External.File?item=UGFyZW50SUQ9Mjg4NDc2fENoaWxkSUQ9LTF8VHlwZT0z&t=1 Link to comment Share on other sites More sharing options...
Liberty Posted May 26, 2015 Author Share Posted May 26, 2015 Liberty Ventures, along with Coatue, JANA Partners and Soroban Capital Partners LP, are funding the LBRDA investment. Doesn't look like we'll get rights. Link to comment Share on other sites More sharing options...
Gamecock-YT Posted May 26, 2015 Share Posted May 26, 2015 9.1x EBITDA for TWC. Not quite as high as Altice's Suddenlink deal at 9.8x. Comcast's deal with TWC was 8.3x Link to comment Share on other sites More sharing options...
Liberty Posted May 26, 2015 Author Share Posted May 26, 2015 9.1x EBITDA for TWC. Not quite as high as Altice's Suddenlink deal at 9.8x. Comcast's deal with TWC was 8.3x Indeed. They're projecting 8.3x after synergies, and they've telegraphed that their 800m model for synergies is very conservative, so I'm expecting more. Could end up being under 8x ultimately... Link to comment Share on other sites More sharing options...
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