Time Warner Cable Is Getting a Little Greedy
This past week, Time Warner Cable received a buyout offer from competitor Charter Communications that valued the company at approximately $61 billion. The offer was quickly rebuffed by Time Warner, which said that the offer drastically undervalues the company and that an offer of $160 a share -- more than 20% higher than the initial offer -- would more appropriately value the cable provider.
The past five years have been kind to most cable providers, and all are more or less trading at the high end of their historic valuation ranges. This, coupled with where Time Warner Cable's competitors are all trading in relation to their underlying earnings, might just signal that Time Warner is getting a little greedy in its quest to extract the last dollar out of Charter Communications. Watch below to find out why and what investors in the cable industry should consider going forward.
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