Philadelphia-based Comcast Corp (CMCSA), the largest U.S cable company, is currently considering a bid for Time Warner Cable (TWC), a deal that would outright unify the largest cable providers in the United States according to sources from Bloomberg.
With all of that being said, it looks to be a simple transaction since there is no insurmountable regulatory obstacles to the transaction as both companies don't overlap in many regions. The two companies have held talks though the process is still at its infancy.
The move however, would definitely disrupt the efforts of Charter Communications Inc to make its own bid for Time Warner Cable. It has already approached and discussed the idea to banks such as Barclays Plc, Bank of America and Deutsche Bank AG to borrow funds for such an acquisition from sources familiar with the subject have said.This deal would thus mean acquiring a much bigger rival for the enterprise value of Time Warner is at USD 61 billion whilst Charter is at USD 28 billion.
With rumors circulating about takeovers, Time Warner Cable shares jumped up, the most in four years as it rose as much as 8.8 percent to USD 131.47, the biggest gain since April of 2009.
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