May 26, 2016
After Comcast's, the nation's largest cable operator, failed 2015 bid to purchase Time Warner Cable (TWC), Charter Communications has successfully acquired TWC. The $56 billion purchase was accompanied by a $10 billion purchase of Bright House Networks which will provide TV, internet, and phone services to over 23 million customers in 41 states.
Each TWC shareholder received $100 cash and about 0.54 of a share of Charter stock for every share of TWC stock. Time Warner is now trading under the ticker symbol TWX.
While the firm states that customers will not see an immediate change, the company will be called Charter and all products and services will be marketed under the "Spectrum" brand. Charter's promise is to provide high quality products at great prices backed up with excellent customer service.
As investors, and consumers, it is always important to know what is happening with the companies you own and purchase services from. Start by asking your advisor for ideas and suggestions in the industries in which you have an interest and they should provide insight to help guide your investment strategy. Keep in mind that as an investor you have the right to choose what you own to help position yourself for long term success.
Caroline Hill, Financial Advisor
(This article contains the current opinions of the author but not necessarily those of Brighton Securities Corp. The author's opinions are subject to change without notice. This blog post is for informational purposes only. Forecasts, estimates, and certain information contained herein should not be considered as investment advice or a recommendation of any particular security, strategy or investment product. References to specific securities and their issuers are for illustrative purposes only and are not intended and should not be interpreted as recommendations to purchase or sell such securities).