Deal would merge U.S.’s largest and second-largest cable providers
Comcast is looking into what regulatory obstacles it might face if it pursues a bid for Time Warner Cable, Comcast-owned CNBC reported Friday, sending stocks for both companies climbing.
If completed, such a deal would merge Comcast, the world’s largest media company and the nation’s biggest cable provider, with the U.S.’s second-largest cable provider.
As of 11 a.m. ET Friday, Comcast stock was up 2.51 percent to $48.64 per share, while TWC stock was up 8.19 percent to $130.76 per share.
A Time Warner Cable spokesman declined to comment on the reports to TheWrap. Comcast representatives did not immediately respond to requests for comment.
Comcast is not in active discussions on deal terms, CNBC reported, citing sources. But it is seeking guidance on antitrust and telecommunications issues, and TWC would prefer to be sold to Comcast, if it is going to be sold, CNBC’s sources said.
They also said Comcast has been quietly considering a purchase of TWC for some time.
The Wall Street Journal reports that Charter Communications is on the verge of making a bid for TWC, but that TWC has reached out to Comcast to discuss a possible deal.
The deal would further extend the vast reach of Comcast, already the world’s largest media company, which took over NBCUniversal in 2011.
It would likely draw intense scrutiny from consumer groups that already objected to the NBCU purchase. Comcast has nearly 22 million television subscribers to TWC’s 11 million.