Time Warner Rejects Charter’s $61 Billion Acquisition Offer

Photo courtesy of Creative Commons.
Photo courtesy of Creative Commons.

Charter Communications Inc. is now appealing to Time Warner Cable shareholders after management rejected a $61 billion acquisition offer. The offer, which translates into a $132.50 a share, was labeled a “low-ball” offer by Time Warner’s chief executive, Rob Marcus. Marcus did say that the company was open to a deal that translates into $160 a share, according to Bloomberg.

“Here’s what happened: We didn’t put our house up for sale, and we got a knock on the door and someone made a low-ball offer,” Marcus said. “They want a premium asset at a bargain-basement price, and that’s just not going to happen.”

It is the third time that Stamford, Conn.-based Charter has made offers to New York-based Time Warner. Charter offered $114-per-share offer in June and $127-per-share in October.

Charter CEO Tom Rutledge said that it would want to help improve Time Warner’s customer service, which has the lowest customer satisfaction score among all pay-TV operators and had the second-lowest score among all companies ranked int he American Customer Satisfaction Index for 2013.

Charter, the fourth-largest cable operator in the U.S., was previously based in the St. Louis area and still has a large presence there.

Read more from Bloomberg

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