Charter closes in on sealing Time Warner deal
Time Warner Cable said yesterday it was working towards closing the deal with Charter Communications by the end of the year.
Charter, backed by billionaire John Malone, said in May that it would buy Time Warner Cable in a cash-and-stock deal, which valued the larger rival at $78.7bn (€72bn).
"We're well into the process of seeking regulatory approvals and planning for integration of our operation," chief executive Robert Marcus said on a post-earnings conference call with analysts.
Regulatory obstacles had earlier sunk Comcast's bid for Time Warner Cable.
MoffettNathanson analyst Craig Moffett said the odds of approval for the Charter deal seems to be getting better based on the recent developments.
Last week, AT&T completed its acquisition of DirecTV, after regulators cleared the deal.
Time Warner Cable reported a 3.5pc rise in second-quarter revenue that still fell short of the average analyst estimate as the company lost about 45,000 residential video customers.
Cable companies have been struggling with declining subscriber numbers as viewers shift to cheaper and more flexible streaming services offered by Netflix, Amazon, Hulu and others.
Charter executives are also exploring whether to launch an online video service as part of its combination with Time Warner Cable, Reuters had reported in May.