Time Warner Cable's final logo used until the acquisition with Charter Communications.
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Former type
|
Subsidiary |
---|---|
Industry | Telecommunications Mass media |
Fate | Acquired by Charter Communications |
Successor | Spectrum |
Founded | 1973 (1973) |
Founder | Time Warner (merger of Time Inc. & Warner Communications) |
Defunct | May 18, 2016 (2016-05-18) |
Headquarters | Time Warner Center, New York City, New York, United States |
Area served
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United States |
Key people
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Robert D. Marcus (Chairman & CEO) |
Parent | Charter Communications |
Subsidiaries | Time Warner Cable Enterprises LLC |
Time Warner Cable (TWC) was an American cable television company. Prior to its purchase by Charter Communications in 2016, it was ranked the second largest cable company in the United States by revenue behind only Comcast, operating in 29 states. Its corporate headquarters were located in the Time Warner Center in Midtown Manhattan, New York City, with other corporate offices in Stamford, Connecticut; Charlotte, North Carolina; and Herndon, Virginia.
It was controlled by Warner Communications, then by Time Warner (the film and television production company and cable channel operator). That company spun off the cable operations in March 2009 as part of a larger restructuring. From 2009 to 2016, Time Warner Cable was an entirely independent company, continuing to use the Time Warner name under license from its former parent (including the "Road Runner" name for its Internet service, now Spectrum Internet).
In 2014, the company was the subject of a proposed purchase by Comcast Corporation, valued at $45.2 billion; however, following opposition to the deal by various groups, along with plans by the U.S. government to try to block the merger, Comcast called off the deal in April 2015. On May 26, 2015, Charter Communications announced that it would acquire Time Warner Cable for $78.7 billion, along with Bright House Networks in a separate $10.1 billion deal, pending regulatory approval.
The purchase was completed on May 18, 2016; Charter had continued to do business as Time Warner Cable in its former markets, but has now re-branded these operations under the Spectrum brand in most markets.
Time Warner Cable was formed in 1992 by the merger of Time Inc.'s cable television company, American Television and Communications Corp. (service areas that had belonged to that company went under the Time Warner Communications name; since the 1990s, areas that had used that name have either been renamed to Time Warner Cable, Bright House Networks, or have been given to other cable providers), and Warner Cable, a division of Warner Communications, as a result of a merger to form Time Warner; for the two years after the merger, the companies operated separately but under the umbrella name "Time Warner Cable Group" (primarily due to 18% of ATC having been publicly owned at the time); they merged into one entity in 1992. It also includes the remnants of the defunct QUBE interactive TV service. In 1995, the company launched the Southern Tier On-Line Community, a cable modem service later known as Road Runner High Speed Online. That year, talks began that would later result in Warner's acquisition of Paragon Cable. Glenn Britt (1949–2014) was the CEO from 2001 until December 2013.
Time Warner retained Time Warner Cable as a subsidiary until March 2009, when it was spun out as an independent company. Prior to the spin-out, Time Warner had held an 84% stake in Time Warner Cable. Non-Time Warner shareholders received 0.083670 shares for each share already owned. This move made Time Warner Cable the largest cable operator in the United States owned solely by a single class of shareholders (without supervoting stock).
Time Warner Cable launched DVR service in the Houston area in 2004. (TWC's Houston-area cable systems are now owned by Comcast.) When first launched, it used Scientific-Atlanta set-top boxes with DVR.
In June 2009, Time Warner Cable unveiled a concept known as "TV Everywhere"—a means of allowing multi-platform access to live and on-demand content to content from television channels that is tied to a user's television subscription.
It was first reported in October 2013 that Time Warner Cable was exploring a sale of the company, possibly to Charter Communications. However, on November 22, 2013, reports surfaced that Comcast expressed interest in acquiring Time Warner Cable. Both companies were said to be placing bids for the company. Charter reiterated its interest in purchasing Time Warner Cable and increased its bid on January 14, 2014. On February 12, 2014, it was reported that Comcast had reached a deal to acquire TWC in an overall deal valued at $45.2 billion, pending regulatory approval.
The proposed merger was met with prominent opposition from various groups, showing concerns that the sheer size of the combined company would reduce competition and would give Comcast an unprecedented level of control over the United States' internet and television industries, increased leverage in the distribution of NBCUniversal content, hamper over-the-top services, and lead to higher prices for its services. In April 2015, it was reported that the U.S. Department of Justice was preparing to file an antitrust lawsuit against the companies in a bid to halt the merger, primarily because the merged company would have controlled 57 percent of the nation's broadband capacity. On April 24, 2015, Comcast officially announced that it had called off the merger.
On May 25, 2015, Bloomberg News reported that Charter was "near" a deal to acquire TWC for $195 a share. Charter had been involved in the Comcast/TWC merger, as the companies planned to divest around 4 million subscribers to Charter in order to reduce the combined company's market share to an acceptable level. The next day, Charter officially announced its intent to acquire Time Warner Cable in a deal valued at $78.7 billion, and confirmed that it would also continue with its proposed, $10.1 billion acquisition of Bright House Networks. The deal was subject to regulatory approval, although due to the relatively smaller size of the companies and their media holdings, the deal was expected to face less resistance than the Comcast/TWC merger.
The acquisition was completed on May 18, 2016. The Time Warner Cable brand was phased out in favor of Spectrum, the brand used by Charter to market its services.
As of second quarter 2009, there were 14.6 million basic cable subscribers, 8.8 million Digital cable subscribers, 8.7 million Road Runner residential subscribers, 2.5 million DVR subscribers, and 4.5 million residential Digital Phone subscribers, which makes it the fifth-largest landline phone provider in the United States.
As of 2013, Time Warner Cable's business division had the second largest business-facing enterprise by revenue (of cable providers who offer business services), with $1.7 billion in revenue as of the third quarter of 2013. Total revenue for 2012 was $1.9 billion.
Spectrum Center, formerly Time Warner Cable Arena, is located in Charlotte, North Carolina, the home of the NBA's Charlotte Hornets. In April 2008, the then-Bobcats reached a naming rights deal with Time Warner Cable, the Charlotte area's major cable television provider; the arena was named for the cable provider in exchange for the release of the team's television rights, which had been on the TWC co-owned Carolinas Sports Entertainment Television for its first season, which failed to find much cable coverage in the Charlotte market outside of Time Warner systems and went dark after a year, and then News 14 Carolina which was limited to only the North Carolina side of the market, until the arena naming rights deal was made. The team moved to the new Fox Sports South sub-feed Fox Sports Carolinas and SportSouth (now Fox Sports Southeast) with the 2008-09 season, allowing coverage through both the Carolinas. Shortly after being acquired by Charter, the arena was renamed to Spectrum Center.
On March 9, 2007, Time Warner Cable, which provides service to the northeastern Wisconsin area, signed a 10-year naming rights deal. The field is home of the Wisconsin Timber Rattlers, a local minor league baseball team of the Midwest League and affiliate of the Milwaukee Brewers, based in Grand Chute, a suburb of Appleton. The team and Time Warner Cable mutually agreed to end the rights deal after the 2013 season, and the venue is now known as Neuroscience Group Field at Fox Cities Stadium, named for a local neurology practice.
On July 31, 2007, Time Warner Cable and Comcast completed a deal to purchase practically all of Adelphia's assets for $17 billion. Time Warner Cable gained 3.3 million of Adelphia's subscribers, a 29 percent increase, while Comcast gained almost 1.7 million subscribers. Adelphia stockholders received 16% of Time Warner Cable. Time Warner Cable went public effective February 13, 2007, and the company began trading on the New York Stock Exchange on March 1, 2007.
In addition to Adelphia's coverage being divided up, Time Warner Cable and Comcast also agreed to exchange some of their own subscribers in order to consolidate key regions. An example of this is the Los Angeles market, which was mostly covered by Comcast and Adelphia (and some areas of the region already served by TWC), is now under Time Warner Cable. Philadelphia had been split between Time Warner and Comcast, with the majority of cable subscribers belonging to Comcast. Time Warner subscribers in Philadelphia were swapped with Comcast in early 2007. Similarly, the Houston area, which was under Time Warner, was swapped to Comcast, while the Dallas metro area was changed to Time Warner (RR). In the Twin Cities, Minneapolis was Time Warner and Saint Paul was Comcast. That whole market is now Comcast.
Time Warner Cable purchased NaviSite (NAVI), a company providing cloud and hosting services, on February 1, 2011 for $230 million, roughly equating to $5.50 per share.
On August 13, 2011, Time Warner Cable announced its purchase of Insight Communications for $3 billion acquiring Insight's 760,000 subscribers nationwide. The merger was completed February 29, 2012, and as of June 2013 all of Insight Communications was absorbed into Time Warner Cable.
On October 7, 2013, Time Warner Cable announced that it has agreed to acquire DukeNet Communications LLC for $600 million. DukeNet provides data and high-capacity bandwidth services to wireless carrier, data center, government, and enterprise customers in the Southeast.
Some of the regional cable system clusters operated by Time Warner Cable are owned by the Time Warner Entertainment – Advance/Newhouse Partnership (TWEAN). In 2002, Advance/Newhouse Communications, unhappy with some of the operating policies of Time Warner Cable in the AOL Time Warner era, forced a restructuring of the TWEAN partnership such that Advance/Newhouse would actively manage and operate a portion of the jointly owned cable systems equal to their percentage of equity. Under this arrangement, Advance/Newhouse enjoys the proceeds of their actively managed systems rather than simply a percentage of the partnership's total earnings. The majority of the affected systems were in the Indianapolis, Tampa and Orlando markets under the Bright House Networks brand.
The value of this deal is that it allows Advance/Newhouse to more directly control their cable investments without having to completely unravel the TWEAN partnership, which does bring some benefits via Time Warner's development and purchasing clout.
The transactions proposed by Charter were approved, TWC and Bright House Networks have been absorbed into Charter.
In late 2005, TWC and several other cable companies formed a venture with Sprint Nextel. This joint venture enables TWC customers to receive a full suite of products, linking in-home and out-of-home entertainment, information, and communications services. All of this was included in the new "Triple Play on the Go", similar to the Triple Play but an addition of new services through Sprint Nextel.
In Beaumont, Texas, during 2008, Time Warner Cable began testing tier-based metered data plans that effectively placed customers into a pricing hierarchy based on the amount of data that they used, . In 2009, Time Warner Cable announced that additional cities including Rochester, New York will become additional test sites. In particular in Rochester groups have formed to stop TWC. Several groups including Stop TWC and Stop The Cap are currently working to oppose these efforts. On April 7, 2009, then US Congressman Eric Massa called on Time Warner to eliminate its broadband Internet cap.
On March 16, 2010, Time Warner Cable's transmission of their Kids on Demand and Kids Pre-School on Demand channels on systems in eastern North Carolina was interrupted by programming from the adult pay television channel Playboy TV for approximately two hours between 6:15 a.m. and 8:15 a.m./EDT, in which a group of nude women talked and posed in a sexually suggestive manner. This accidental display affected Time Warner's digital cable subscribers in four towns in the system's eastern North Carolina cluster, while other areas displayed a black screen. A Time Warner spokesperson said in a statement to Raleigh CBS affiliate WRAL, "It was a technical malfunction that caused the wrong previews to be shown on our kids' on-demand channels. Unfortunately it hit at the worst possible time on the worst possible channels." A Time Warner executive said normal monitoring procedures did not take effect because the glitch affected only a few areas. Customers were told to pay the small fee, and that their next bill would be reduced.
Time Warner Cable's divisions, from official website:
Sold to Comcast
Divisions that became Bright House Networks
The American Customer Satisfaction Index (ACSI) ranked Time Warner Cable as one of the least liked companies in terms of customer satisfaction in 2011, 2012, 2013, and 2014.
– Still in operation, but no longer offers cable or Internet as part of its services
2016-05-12 | Boost Price Target | Deutsche Bank | Buy | $224.00 to $240.00 |
2016-05-12 | Boost Price Target | Deutsche Bank AG | Buy | $224.00 to $240.00 |
2016-05-02 | Reiterated Rating | Wunderlich | Hold | $219.00 to $237.00 |
2016-04-11 | Reiterated Rating | Needham & Company LLC | Hold | |
2016-03-19 | Reiterated Rating | Buckingham Research | Hold | $187.00 to $219.00 |
2016-03-02 | Downgrade | Wunderlich | Buy to Hold | $219.00 |
2016-02-25 | Reiterated Rating | JPMorgan Chase & Co. | Buy | $194.00 |
2016-01-31 | Reiterated Rating | Deutsche Bank | Buy | |
2016-01-30 | Reiterated Rating | RBC Capital | Sector Perform | $204.00 to $190.00 |
2016-01-30 | Reiterated Rating | Royal Bank Of Canada | Sector Perform | $204.00 to $190.00 |
2015-11-10 | Initiated Coverage | SunTrust | Neutral | $202.00 |
2015-11-10 | Initiated Coverage | SunTrust Banks Inc. | Neutral | $202.00 |
2015-11-03 | Reiterated Rating | Deutsche Bank | Buy | $224.00 |
2015-10-30 | Reiterated Rating | Canaccord Genuity | Buy | $206.00 to $211.00 |
2015-10-30 | Boost Price Target | RBC Capital | Sector Perform | $200.00 to $204.00 |
2015-10-30 | Boost Price Target | Jefferies Group | Hold | $197.00 to $212.00 |
2015-08-28 | Reiterated Rating | Barclays | Equal Weight | $166.00 to $206.00 |
2015-08-28 | Reiterated Rating | Barclays PLC | Equal Weight | $166.00 to $206.00 |
2015-08-03 | Reiterated Rating | Brean Capital | Hold | |
2015-08-03 | Reiterated Rating | RBC Capital | Sector Perform | $196.00 to $200.00 |
2015-07-31 | Boost Price Target | Canaccord Genuity | Buy | $175.00 to $206.00 |
2015-07-31 | Downgrade | Buckingham Research | Buy to Neutral | |
2015-07-31 | Reiterated Rating | Wunderlich | Buy | $180.00 to $219.00 |
2015-07-24 | Reiterated Rating | Brean Capital | Hold | |
2015-07-13 | Initiated Coverage | Deutsche Bank | Buy to Buy | $221.00 |
2015-06-23 | Downgrade | Scotiabank | Outperform to Sector Perform | |
2015-06-08 | Reiterated Rating | Telsey Advisory Group | Market Perform | |
2015-05-29 | Reiterated Rating | RBC Capital | Sector Perform | $160.00 to $196.00 |
2015-05-27 | Reiterated Rating | Robert W. Baird | Hold | |
2015-05-27 | Reiterated Rating | JPMorgan Chase & Co. | Overweight | $176.00 to $196.00 |
2015-05-27 | Upgrade | Needham & Company LLC | Underperform to Hold | |
2015-05-27 | Boost Price Target | Pivotal Research | Buy | $198.00 to $222.00 |
2015-05-26 | Set Price Target | S&P Equity Research | Buy | $170.00 to $195.00 |
2015-05-26 | Downgrade | Jefferies Group | Buy to Hold | |
2015-05-23 | Reiterated Rating | Wunderlich | Buy | |
2015-05-20 | Initiated Coverage | Barclays | Equal Weight | $166.00 |
2015-05-08 | Reiterated Rating | Pacific Crest | Equal Weight | |
2015-05-04 | Boost Price Target | RBC Capital | Sector Perform | $155.00 to $160.00 |
2015-05-01 | Reiterated Rating | Wunderlich | Buy | $190.00 to $180.00 |
2015-04-30 | Reiterated Rating | Canaccord Genuity | Buy | $175.00 |
2015-04-30 | Initiated Coverage | Morgan Stanley | Equal to Equal Weight | $170.00 |
2015-04-23 | Upgrade | Jefferies Group | Hold to Buy | $190.00 to $193.00 |
2015-03-26 | Reiterated Rating | Wunderlich | Buy | $190.00 |
2015-03-02 | Downgrade | Needham & Company LLC | Hold to Underperform | |
2015-02-17 | Reiterated Rating | Moffett Nathanson | Buy to Neutral | |
2015-01-30 | Reiterated Rating | Brean Capital | Hold | |
2014-12-18 | Downgrade | BTIG Research | Buy to Neutral | $160.00 |
2014-11-03 | Upgrade | Buckingham Research | Neutral to Buy | $150.00 to $185.00 |
2014-10-31 | Downgrade | Brean Capital | Buy to Hold | $186.00 |
2014-10-16 | Upgrade | Topeka Capital Markets | Hold to Buy | $90.00 |
2014-10-02 | Reiterated Rating | Bank of America | Neutral | $75.00 to $79.00 |
2014-10-02 | Reiterated Rating | Bank of America Corp. | Neutral | $75.00 to $79.00 |
2014-09-10 | Initiated Coverage | Canaccord Genuity | Buy | $178.00 |
2014-08-18 | Reiterated | UBS | Buy | $148 to $173 |
2014-08-01 | Reiterated Rating | Jefferies Group | Hold | $150.00 to $178.00 |
2014-07-31 | Reiterated Rating | Telsey Advisory Group | $158.00 | |
2014-07-28 | Upgrade | Wunderlich | Hold to Buy | $146.00 to $190.00 |
2014-07-16 | Boost Price Target | Brean Capital | Buy to Buy | $165.00 to $186.00 |
2014-06-30 | Reiterated Rating | Evercore ISI | Overweight | $149.00 to $178.00 |
2014-05-06 | Boost Price Target | RBC Capital | $142.00 to $155.00 | |
2014-04-28 | Boost Price Target | RBC Capital | Sector Perform | $142.00 to $155.00 |
2014-04-25 | Reiterated Rating | Jefferies Group | Hold | $150.00 |
2014-04-25 | Upgrade | Pivotal Research | Hold to Buy | $135.00 to $175.00 |
2014-04-22 | Initiated Coverage | Telsey Advisory Group | Not Rated | $158.00 |
2014-04-21 | Upgrade | Brean Capital | Hold to Buy | $60.00 to $165.00 |
2014-04-16 | Upgrade | Wells Fargo & Co. | Market Perform to Outperform | $132.50 to $160.00 |
2014-04-16 | Upgrade | Wells Fargo | Market Perform to Outperform | $132.50 to $160.00 |
2014-04-07 | Boost Price Target | Wunderlich | $138.00 to $146.00 | |
2014-03-04 | Downgrade | Macquarie | Outperform to Neutral | |
2014-02-18 | Reiterated Rating | Bank of America | Positive | |
2014-02-13 | Downgrade | Barrington Research | Outperform to Market Perform | |
2014-02-10 | Boost Price Target | Wunderlich | $138.00 | |
2014-01-31 | Boost Price Target | Barclays | $120.00 to $130.00 | |
2014-01-31 | Boost Price Target | Raymond James | $135.00 to $144.00 | |
2014-01-31 | Boost Price Target | RBC Capital | $131.00 to $142.00 | |
2014-01-31 | Boost Price Target | JPMorgan Chase & Co. | $131.00 to $145.00 | |
2014-01-31 | Boost Price Target | Jefferies Group | Hold | $145.00 to $148.00 |
2014-01-24 | Initiated Coverage | Topeka Capital Markets | Hold | |
2014-01-21 | Downgrade | Needham & Company LLC | Buy to Hold | $132.50 to $135.00 |
2014-01-15 | Downgrade | Nomura | Buy to Neutral | $125.00 |
2014-01-14 | Boost Price Target | Wunderlich | Buy | $124.00 to $132.50 |
2013-12-19 | Initiated Coverage | Buckingham Research | Accumulate to Neutral | |
2013-12-19 | Initiated Coverage | Jefferies Group | Buy to Hold | $145.00 |
2013-12-17 | Boost Price Target | BTIG Research | Buy | $160.00 |
2013-12-04 | Initiated Coverage | Northland Securities | Outperform | $165.00 |
2013-12-03 | Boost Price Target | Evercore ISI | $125.00 to $154.00 | |
2013-11-25 | Downgrade | Argus | Buy to Hold | |
2013-11-23 | Reiterated Rating | Wunderlich | Hold | $124.00 |
2013-11-23 | Reiterated Rating | RBC Capital | Buy | $109.00 |
2013-11-22 | Downgrade | Pivotal Research | Buy to Hold | |
2013-11-05 | Reiterated | RBC Capital Mkts | Sector Perform | $116 to $131 |
2013-11-05 | Boost Price Target | RBC Capital | Sector Perform | $116.00 to $131.00 |
2013-11-04 | Upgrade | Deutsche Bank | Hold to Buy | $109.00 to $141.00 |
2013-10-08 | Boost Price Target | Wunderlich | Hold | $113.00 to $124.00 |
2013-08-02 | Reiterated | Hudson Square Research | Buy | $114 to $134 |
2013-04-08 | Reiterated | Wunderlich | Hold | $95 to $102 |
2016-05-12 | Boost Price Target | Deutsche Bank | Buy | $224.00 to $240.00 |
2016-05-12 | Boost Price Target | Deutsche Bank AG | Buy | $224.00 to $240.00 |
2016-05-02 | Reiterated Rating | Wunderlich | Hold | $219.00 to $237.00 |
2016-04-11 | Reiterated Rating | Needham & Company LLC | Hold | |
2016-03-19 | Reiterated Rating | Buckingham Research | Hold | $187.00 to $219.00 |
There is presents forecasts of rating agencies and recommendations for investors about this ticker
In TWC 31 funds of 2213 total. Show all
Fund name | Ticker shares |
---|---|
ORBIS HOLDINGS LTD | 2.42M |
MANAGED ACCOUNT ADVISORS LLC | 0.31M |
GREEN ARROW CAPITAL MANAGEMENT LLC | 0.30M |
RUSSELL FRANK CO/ | 0.17M |
Loeb Offshore Management LP | 74688 |
Samson Capital Advisors LLC | 36500 |
Coronation Asset Management (Pty) Ltd. | 22715 |
KS MANAGEMENT CORP | 22707 |
Andromeda Capital LLC | 20000 |
Placemark Investments, Inc. | 18413 |
KOKUSAI Asset Management Co., Ltd. | 13700 |
VTL Associates, LLC | 10459 |
CITY NATIONAL BANK | 4046 |
Keel Point Advisors, LLC | 2398 |
MID CONTINENT CAPITAL LLC/IL | 2150 |
Name Relationship | Total Shares | Holding stocks |
---|---|---|
BRITT GLENN Chairman & CEO | 0.06% (177542) | CAH / TWC / XRX / |