In the media: Comcast lines up JPMorgan to advise on possible TWC bid
The plot has thickened once again in the ongoing story of Time Warner Cable being bought out by another cable operator. Reuters reported that Comcast has turned to JPMorgan Chase & Co. for its expertise in case it decides to throw a bid on Time Warner Cable
Citing un-named sources, Reuters said that Comcast turned to JPMorgan Chase & Co. to help it review its options. Reuters’ sources said Comcast wasn’t planning on making a pre-emptive bid for Time Warner Cable, but could elect to jump in if Liberty Media-backed Charter Communications gets close to a deal.
Reuters also reported that Comcast could decide not to do bid on Time Warner Cable.
With John Malone and Liberty Media’s backing, Charter has reportedly been rebuffed by Time Warner Cable executives. Previous reports have said that Time Warner Cable has found a deal with Comcast to be more amiable. Combining the Comcast, the nation’s largest cable operator, with the Time Warner Cable, which is the second largest, could face more regulatory scrutiny from the Federal Communications Commission and the Justice Department.
Comcast has the financial wherewithal to pull off a deal for Time Warner Cable, and would be a better geographic fit, according to Reuters. Cox Communications has also reportedly expressed an interest in Time Warner Cable.
Last month, The Wall Street Journal reported that Charter had initiated talks with banks, including Bank of America, Barclays and Deutsche Bank, in order to raise funds for its bid on Time Warner Cable.
Outgoing Time Warner Cable CEO and Chairman Glenn Britt has said he wasn’t opposed to doing a consolidation deal, but it had to make sense for Time Warner Cable’s shareholders. Last week Bloomberg said that Time Warner Cable would probably accept a bid of $150 to $160 a share.