Time Warner Cable Inc. (TWC) (0.3%) (TWC - $147.30 - NYSE) is the second largest cable operator in the U.S., with 11 million subscribers located primarily in New York City, Los Angeles, the Carolinas, and the Midwest. The company was spun-off from Time Warner in March 2009. After several strong years of growth and shareholder returns, the company encountered customer service and competitive challenges in late 2012 which left it vulnerable to takeover. Indeed, Charter Communications (less than 0.1%), backed by Liberty Media (0.7%), attempted on several occasions to acquire the company in 2013. Finally in February 2014, Comcast (0.7%), the largest cable operator in the U.S., agreed to acquire TWC in an all stock transaction. Charter subsequently agreed to effectively split TWC with Comcast, making it a better transaction for all involved. While the proposed deals have been criticized in the press, we expect it to close early in 2015.
From Mario Gabelli (Trades, Portfolio)’s The Gabelli Asset Fund Second Quarter 2014 Shareholder Commentary.
