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Charter Weighs Bid for Time Warner Cable

The two companies are talking about a tie-up


time warner cableSources tell Reuters that a major cable TV merger may be in the works. Time Warner Cable (TWC) and Charter Communications (CHTR) are reportedly in talks about a possible deal to combine their businesses.

The new talks follow discussions earlier this year about a potential deal. Liberty Media Corp. (LCMA), which controls Charter, is said to be driving the idea. Time Warner Cable has signaled that it might consider a merger, if the price is set high enough.

Time Warner Cable Will Carry Al Jazeera America Again
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Structuring the deal to appeal to Time Warner shareholders will be critical if the bid is to succeed. Charter is said to have retained advisors to guide a potential proposal.

Charter, the fourth largest cable TV provider, has a current market capitalization of about $13 billion, while Time Warner Cable, which is the second ranked U.S. cable service, is worth about $34 billion. Charter has four million subscribers, compared to 12 million for Time Warner.

Time Warner CEO Glenn Britt is stepping down this year.

Shares of Charter fell more than 1% in Monday trading, while Time Warner slipped modestly.

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