Comcast interested in Time Warner, Viacom?
August 17th, 2009, 7:44 am · 4 Comments · posted by Tamara Chuang, a.k.a. The Gadgetress
Noted: The Web is buzzing after a Reuters report speculated that cable provider Comcast Corp. wants to buy a media company with its extra cash — some $3.9 billion as of June 30. Time Warner (owner of HBO, Warner Bros.) and Viacom (owner of MTV, Comedy Central and Paramount) are the two names floating around. But there appears to be no interest in its major competitor, Time Warner Cable.
How likely is this? Well, Comcast is the same company that offered what some termed an audacious $54 billion bid for Walt Disney Co. in 2004. Disney said something like “Are you kidding?” and flicked the cable TV company away.
The Reuters story is from the investor’s view. Investors fear it because, “With Comcast, the concern for acquisition risk doesn’t have to be logical,” said Collins Stewart analyst Thomas Eagan.
Time Warner is working with Comcast to develop the “TV Everywhere” service, which would let cable subscribers watch the same movies and TV shows online that they get on TV. Comcast plans to announce trials nationwide really soon. No word on Time Warner’s testing grounds or whether Orange County will be included.
Comcast, which once offered TV service in Fullerton and Buena Park, no longer operates in Orange County. Like Time Warner Cable, Comcast has been losing customers — it lost 2.7 percent during its last quarter compared to a year ago. However, in the same period, Comcast still made making money. Its sales grew 4.6 percent.
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Big money in cable. Always wondered how cable companies could bundle commercial channels (no different than “free” TV for the most part) and justify charging soaring prices for the privilege of viewing them.
There used to be at least three cable companies serving Orange County. Now there’s Time Warner, who took over Comcast, Adelphia, and who knows who else.
Ironic that Comcast would turn around and buy Time Warner. Something like “Baby Bell” Pacific Bell acquiring former parent “Ma Bell” AT&T. New company, higher prices, same mediocre service.
Here’s to the new boss
Same as the old boss
—The Who, “Won’t Get Fooled Again,” 1971
Comcast and Time Warner Cable do NOT compete. Comcast is the nations largest cable company; TWC is the second largest. They have cable ‘franchises’ from cities, but don’t compete against each other. The cable industry takes care of its own and in many cases decides among themselves where they will provide service. Look how Comcast and TWC agreed to divide up the Adelphia assets all over the country. Regulators would almost certainly not approve Comcast acquiring TWC. That’s over 65% of the cable customers in the USA.
Verizon and AT&T are Comcast’s biggest competitors.
Comcast is interested in Time Warner, the media company, which now only owns a very small percentage of shares in Time Warner Cable. They are more interested in controlling media whether its delivered by television, cable, the internet or other means.
Time Warner Cable is so bad Comcast wouldn’t want them.
I use to follow Comcast and the cable sector a lot. I recall when Comcast made its bid for Disney. After Comcast withdrawal its offer for Disney Comcast said it would continue to pursue its investment in context. According to Barrons Reuters and this article says that Comcast would pursue TWC for its content. TWX has always owned the cable stations. I think TWC owned very little content if any. Comcast may be interested in TWX and VIA but, I doubt it is looking to buy more cable subs. Comcast is close to the limit of subs that the FCC imposed sometime ago. Not sure if those limits are still in effect but, if Comcast made a bid for Disney and is thinking about VIA most likely it is looking at Time Warner who will spin off AOL by year end.
Oh yeah, Comcast recently buying back it shares in the open market. Could be doing that to increase the value of the stock to make an all stock offer or a mix of stock and cash.
“Will Comcast (CMSCA) use its rising cash pile to make a large acquisition in the content business?
Reuters raised that question in a lengthy news analysis yesterday which wondered if the company is plotting a giant deal along the lines of its failed $54 billion bid for Disney (DIS) in 2004. The story says speculation on the Street has the company potentially targeting Viacom (VIA), or even Time Warner (TWC). (A combination with Time Warner – which would give the company control of key cable properties like HBO and CNN – would be truly weird, given that Time Warner only months ago spun off Time Warner Cable as an independent company.) The story says that Disney is no longer seen as a target, and also adds that there is little evidence that Comcast is actually working on any kind of mega deal.
The piece notes that former Disney chief Michael Eisner – who ran the Mouse House when Comcast tried to buy it – said in an interview with Broadcast & Cable magazine that he thinks Comcast might yet decide to attempt a large content acquisition. Here’s an excerpt from Eisner’s comments:
Comcast won’t just be sitting there; they may want to recapture their dreams of going after Disney, but not with Disney specifically. And I am sure Brian Roberts and Steve Burke have Time Warner high on their computer screens. Now, I have zero information about this whatsoever. But anyone paralyzed in a distribution business absolutely should be looking at high-end content.
The Reuters story says analysts think Comcast would be better off using excess cash to buy back stock.”