Comcast to purchase Time Warner Cable, future Apple TV partnership uncertain
It was reported earlier on Wednesday that Apple is preparing to debut a new Apple TV platform in partnership with Time Warner Cable, but Comcast is now said to be finalizing a purchase of TWC that could affect continued negotiations.
According to CNBC's David Faber, who was first to report on the supposed deal, Comcast is preparing an all stock buyout of Time Warner for $159 per share. An official announcement is expected for Thursday.
As noted by Barron's, TWC currently has 277.9 million shares outstanding, which would give the proposed deal a value of $45.2 billion. The publication also pointed out that the news, if true, officially ends speculation of a partial or complete buyout bid from cable giant Charter Communications.
Subsequent tweets from Faber said Comcast is willing to shed some three million subscribers to ease regulatory issues tied to the takeover. The Federal Communications Commission will likely scrutinize the tie-up considering the implications of a merger between the nation's top two cable providers, but the company is looking to avoid a consent decree, he said.
It is unclear what the shakeup could mean for Apple's TV ambitions, as Cupertino was rumored to be readying a new set-top platform in partnership with TWC. Rather than deal directly with content owners like ESPN and HBO, an agreement with a cable provider would streamline the process of bringing a totally new digital interface to the living room.
Apple has been in talks with TWC for some time now and some analysts believed the provider was Cupertino's best chance at an Apple TV partnership. Comcast, on the other hand, has been notoriously slow to warm to the idea of an Apple-branded set-top device and corresponding service.
According to CNBC's David Faber, who was first to report on the supposed deal, Comcast is preparing an all stock buyout of Time Warner for $159 per share. An official announcement is expected for Thursday.
As noted by Barron's, TWC currently has 277.9 million shares outstanding, which would give the proposed deal a value of $45.2 billion. The publication also pointed out that the news, if true, officially ends speculation of a partial or complete buyout bid from cable giant Charter Communications.
Subsequent tweets from Faber said Comcast is willing to shed some three million subscribers to ease regulatory issues tied to the takeover. The Federal Communications Commission will likely scrutinize the tie-up considering the implications of a merger between the nation's top two cable providers, but the company is looking to avoid a consent decree, he said.
It is unclear what the shakeup could mean for Apple's TV ambitions, as Cupertino was rumored to be readying a new set-top platform in partnership with TWC. Rather than deal directly with content owners like ESPN and HBO, an agreement with a cable provider would streamline the process of bringing a totally new digital interface to the living room.
Apple has been in talks with TWC for some time now and some analysts believed the provider was Cupertino's best chance at an Apple TV partnership. Comcast, on the other hand, has been notoriously slow to warm to the idea of an Apple-branded set-top device and corresponding service.
Comments
Let me be the first to say: "Re: Apple TV...Now What?"
Great. Comcast owns NBC and now Time Warner.
I guess that simplifies things for the DoJ when in ten years they sue Apple for monopolistic partnering with the only telecom in existence. Never mind that the only telecom in existence is inherently monopolistic; that doesn’t matter. What matters is that Apple is doing something that lets us take money from them.
It proves wrong the stupid April-Christmas rumor, at least.
Give me a break. I have no problem with a modest amount of consolidation, but I want access to competing tech equally. I can't get Verizon FIOS because of monopoly contracts by Comcast in Eastern WA, but they can continue to eat up their competition? Eff them.
So glad at least I have DISH or DirecTV and CenturyLink [who needs to make a FIOS option equivalent sooner rather than later].
Why on Earth would Apple even partner up with a cable co? Hulu I could see but hard line? Nah, everything will be cellular soon enough- cable companies will die out in a decade (including remote cities once LTEA goes live).
All Cellular is hard-lined, in the end. The entire backhaul hard-line connects for redundancy and power.
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Give me a break. I have no problem with a modest amount of consolidation, but I want access to competing tech equally.
True that. Although I'm more interested in cable internet than tv.
One problem with this deal is it looks like Comcast is trying to buy Time warner. I am surprised this was not mentioned in the article.
I reread your post five times before hitting quote. Just to make sure.
But that’s exactly what the title itself says…
There's no way Apple wouldn't have known this was in the works.
I reread your post five times before hitting quote. Just to make sure.
But that’s exactly what the title itself says…
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I reread your post five times before hitting quote. Just to make sure.
But that’s exactly what the title itself says…
Obviously I thought I was commenting on the other previous article since they used the same Apple TV graphic. Do you live on this forum? I deleted my post almost immediately after I noticed the mistake myself. How you managed to quote me in the short time prior to me deleting it says quite a bit.
My only hope is that this causes the satellite cos to partner with Apple as well. No way I'm going back to cable.
Netflix has House of Cards. Apple should dangle a bunch of money to the top show producers and just bypass these giant middlemen.
And orange is the new black. Great show there
CNBC keeps on Bashing AAPL. Is it because Comcast owns CNBC now and is scared of Apple entering content business leaving Comcast future in a big hole?