Yahoo Finance Changes for Time Warner Cable after the Charter Transaction
Charter Completes Merger with Bright House and Time Warner Cable
Time Warner Cable after the merger with Charter Communications
In the first part of this series, we learned about the completion of the merger of Charter Communications (CHTR), Bright House Networks, and Time Warner Cable (TWC) into the new Charter Communications. According to Charter Communications, Tom Rutledge will serve as chairman of the board, president, and CEO. Now let’s look at key changes for Time Warner Cable and Bright House Networks.
Rutledge stated, “Current Bright House Networks and Time Warner Cable customers won’t see many changes right away, though in the coming months they will begin to hear more from us about the Spectrum brand, and the product improvements and consumer friendly policies that come with it.”
According to Time Warner Cable, “Over the next several months, our Spectrum products and services will begin to be introduced in the Time Warner Cable and Bright House Networks areas.”
Customer base of companies in the Charter transaction
In terms of the scale of customer base, as of the end of 1Q16, Time Warner Cable had the second largest cable customer base with ~16.1 million customer relationships in the United States. The largest player in this market was Comcast (CMCSA) (CMCSK) at the end of 1Q16. The figure for old Charter was ~6.8 million at the end of the same period. Bright House Networks had ~2.5 million customer relationships at the end of 4Q15, per Charter.
For diversified exposure to some of the largest US cable companies, you might consider investing in the SPDR S&P 500 ETF (SPY). SPY held a total of ~0.87% of its holdings in Comcast (CMCSA, and Cablevision Systems (CVC) on May 17, 2016.
In the next part of this series, we’ll look at some expected changes on the Internet side of the new company.
Browse this series on Market Realist:
