Boston, MA 07/05/2013 (wallstreetpr) – Time Warner Cable, Inc. (NYSE:TWC) is one of the most discussed stocks at the moment given the massive rally of the share price in the market. In just four weeks, it rose to $114 from $94 and closed last night at $109.47.
On the one hand, the strategic steps taken by Time Warner Cable, Inc. (NYSE:TWC) have further boosted the bullish sentiment. The company is said to be signing a deal with Apple, Inc. (NASDAQ:AAPL) to provide its cable television subscribers access to live stream and real time programming on the Apple TV. Time Warner Cable, Inc. (NYSE:TWC) has also signed a major agreement with Microsoft to use the Xbox 360 console to provide over 300 live television channels. A similar agreement has been signed with Roku, Inc. The company has also launched TWC TV application in partnership with Viacom, bringing back cast members from their previous hit series to popularize it.
On the other hand, the company is getting doggedly pursued by Charter Communications Inc., in which the billionaire John Malone’s Liberty Media Corp. holds a 27% stake. Charter, the fourth-ranked company in the cable industry, has a market capitalization of only $12.5 billion, with a debt of $12.8 billion. Even the cumulative market value of both Charter and Liberty, which has a market capitalization of $15.3 billion, falls far short of the enterprise value of Time Warner Cable Inc (NYSE:TWC), which comes at $52 billion by adding the $33 billion market cap and approximately $19 billion in debt. The market expects a minimum of 10% premium for the acquisition to reach success, with the total funds required by Charter amounting to about $60 billion. Although Time Warner Cable, Inc. (NYSE:TWC) has rejected the offer and Malone is thinking about going directly to the investors, the market is already clearly discounting the acquisition by driving the stock to higher levels.
