The arrangement with Comcast, which has agreed to acquire Time Warner Cable, would allow Charter Communications to become the country’s second-largest cable operator.
Since Comcast announced its deal for Time Warner Cable, its shares have fallen about 10 percent, meaning Time Warner Cable investors are receiving about $140 a share instead of nearly $159.
As the company prepares to defend its proposed merger with Time Warner Cable at a Senate hearing this week, some obvious questions require answers.
In a proxy statement filed with the Securities and Exchange Commission, Charter said the risk of regulatory rejection of the merger made it in the interest of Time Warner Cable shareholders to turn down the deal.
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With the Time Warner Cable deal, Comcast would not only lock up 30 percent of the cable market, but pricing leverage in all directions — with customers, networks and over-the-web providers like Netflix.
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Comcast was not intensely engaged with Time Warner Cable until about 10 days or so prior to the announcement of the $45 billion acquisition, according to Comcast’s chief.
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Comcast, the nation’s largest cable provider and the owner of NBCUniversal, increased its net income 26 percent, to $1.9 billion, compared with a year ago.
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