Time Warner Cable targets closing Charter deal by year end

Thu Jul 30, 2015 11:08am EDT
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By Arathy S Nair

(Reuters) - Time Warner Cable Inc TWC.N said on Thursday it was working towards closing the deal with Charter Communications (CHTR.O: Quote) by the end of the year.

Charter said in May that it would buy Time Warner Cable in a cash-and-stock deal, which valued the larger rival at $78.7 billion.

"We're well into the process of seeking regulatory approvals and planning for integration of our operation," Chief Executive Robert Marcus said on a post-earnings conference call with analysts.

Regulatory obstacles had earlier sunk Comcast's (CMCSA.O: Quote) bid for Time Warner Cable.

MoffettNathanson analyst Craig Moffett said the odds of approval for the Charter deal seems to be getting better based on the recent developments.

Last week, AT&T Inc (T.N: Quote) completed its acquisition of DirecTV, after regulators cleared the deal.

Time Warner Cable reported a 3.5 percent rise in second-quarter revenue that still fell short of the average analyst estimate as the company lost about 45,000 residential video customers.

Cable companies have been struggling with declining subscriber numbers as viewers shift to cheaper and more flexible streaming services offered by Netflix Inc (NFLX.O: Quote), Amazon.com Inc (AMZN.O: Quote), Hulu and others.   Continued...

Traders work at the post where Time Warner Cable is traded on the floor of the New York Stock Exchange May 26, 2015.   REUTERS/Brendan McDermid