Why a Time Warner Sale Won't Lower Your Cable Bill

Why a Time Warner Sale Won't Lower Your Cable Bill

With multiple cable operators weighing whether to buy Time Warner Cable , it's probably just a matter of time before consolidation hits the industry. Charter Communications and Comcast are both reportedly in talks to snap up all, or even just pieces, of Time Warner. And Charter might have the inside track with an offer it is crafting for Time Warner investors that includes $90 a share in cash.

In the following video, Fool contributor Demitrios Kalogeropoulos points out that cable companies are in a rush to get bigger so that they can counteract the spike in programming costs that's happened over the past few years. However, those costs have risen so fast that it's unlikely that even a huge cable merger would be enough to push down average cable bills, he says.

Take charge of your retirement
It's no secret that investors tend to be impatient with the market, but the best investment strategy is to buy shares in solid businesses and keep them for the long term. In the special free report, "3 Stocks That Will Help You Retire Rich," The Motley Fool shares investment ideas and strategies that could help you build wealth for years to come. Click here to grab your free copy today.

The article Why a Time Warner Sale Won't Lower Your Cable Bill originally appeared on Fool.com.

Fool contributor Demitrios Kalogeropoulos and The Motley Fool have no position in any of the stocks mentioned. Try any of our Foolish newsletter services free for 30 days. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

Copyright © 1995 - 2013 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.

Originally published