TWC

Time Warner Cable Inc.

TMT, Event Driven/Special Sit


Presented:09/17/2013
Price:$112.32
Cap:$32.10B
Current Price:$209.56
Cap:$59.66B

Presented

Date09/17/2013
Price$112.32
Market Cap$32.10B
Ent Value$55.61B
P/E Ratio22.02x
Book Value$28.54
Div Yield1.9%
Shares O/S285.78M
Ave Daily Vol2,390,000
Short Int1.52%

Current

Price$209.56
Market Cap$59.66B
Time Warner Cable Inc., together with its subsidiaries, offers video, high-speed data, and voice services to residential and business service customers over its broadband cable systems in the United States. The company provides a range of video services, including video on demand and digital video recorder services, as well as programming in three-dimensional format; residential high-speed data services with connection to the Internet; and digital phone services to residential customers. It also offers residential voice service; local and long distance calling throughout the United States, Canada, and Puerto Rico; IntelligentHome, a home automation and monitoring service; and Verizon Wireless-branded wireless services. In addition, the company provides data services, including Internet access, network services, and wholesale transport services; Business Class Phone comprising various calling plans and other business features, such as call hunting, call forwarding options, call restrictions, and call transfer; and Business Class primary rate interface for medium and enterprise-sized businesses, as well as supports approximately 23 simultaneous voice calls on each two-way trunk line. Further, it offers video programming tiers and music services; and managed and outsourced information technology solutions, and cloud services, as well as customized cloud, managed hosting, managed application, and messaging solutions. As of December 31, 2012, the company served approximately 15.2 million customers, who subscribed to its primary services totaling approximately 28.9 million primary service units in the New York State, the Carolinas, Ohio, Kentucky, Wisconsin, southern California, and Texas. Time Warner Cable Inc. is based in New York, New York.

Highlights

The presenter said the investment case for Time Warner (TWC) is a relatively simple risk/ reward given the set-up around consolidation in the industry. He noted the stand-alone case is compelling as well, but the potential for John Malone to use Charter as a vehicle to take out TWC is incrementally positive.

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