Charter said to be working on new bid with Goldman Sachs to take over cable giant
From the time we're children, we're told that "no" means "no." Period. End of discussion.
Apparently the folks at Charter Communications didn't get that memo.
Reuters reports this afternoon that the smaller cable company is once again working on a plan — this time with Goldman Sachs — to acquire the much larger Time Warner Cable, despite being rebuffed in its efforts once already.
TWC, of course, is usually the buyer, not the seller; of late, right here at home, it's swallowed up portions of NewWave in Kentucky and Tennessee, not to mention all of Insight.
But that's not stopping Liberty Media boss John Malone, the cable pioneer who bought 27% of Charter earlier this year — he wants more.
And it's not about TV. It's about broadband.
That's what Malone told the Denver Post in an exclusive interview, anyway.
"In prime time, about half of all the traffic on the Internet is Netflix or Amazon — in other words, it's video," Malone said. "As that trend continues, the need for greater capacity on the local distribution of the Internet really favors cable, and our belief is that cable will be able to charge more for higher speeds and greater capacity."
“Malone has clearly thrown down the gauntlet,” said Paul Sweeney, an analyst at Bloomberg Industries. “He believes the cable industry needs further consolidation.”
But will it be a smaller fish devouring the bigger one?
Stay tuned ...