Charter to Buy Time Warner Cable: Winners and Losers

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Charter to Buy Time Warner Cable: Winners and Losers

REUTERS/Mike Blake

May 26, 2015

Charter Communications on Tuesday said it will acquire Time Warner Cable in a deal valued at more than $55 billion. Charter will also buy Bright House Networks, a smaller cable company, for $10.4 billion. The two deals combined will make Charter into the second-largest cable and broadband provider in the U.S., with about 24 million subscribers, behind only Comcast, which has about 27 million subscribers.

WINNERS

Time Warner shareholders: An extra $10 billion over the $45.2 billion Comcast had offered sure makes for a nice payday after the earlier deal got scrapped. “Time Warner Cable has succeeded in extracting a fantastic price for its shareholders, far exceeding our expectations,” Morningstar strategist Michael Hodel wrote Tuesday. Hedge fund managers John Paulson of Paulson & Co. and Chris Hohn of Children’s Investment Fund Management reportedly both had sizable holdings in Time Warner Cable.

Time Warner Cable subscribers: The company’s service is reviled by customers. Charter’s isn’t exactly beloved, either, and subscribers may not see any immediate changes, but Charter promises that the deal will translate into faster broadband for subscribers and more free public Wi-Fi. Whether it actually does or not, the deal seems to spell the end of the Time Warner Cable name. Subscribers won’t miss it.

John Malone: The Liberty Media billionaire finally gets the megadeal he’s been looking for to make Charter Communications into a major industry power. If the deals goes through, the company would become the second-largest cable and broadband provider in the country, with some 24 million total subscribers.

LOSERS

Comcast: At least CEO Brian Rogers was graceful about the prospect of a larger competitor. "This deal makes all the sense in the world,” he said in a statement. “I would like to congratulate all the parties."

Television content providers: One rationale for the deal is that the scale of the combined company will afford it more leverage in its negotiations with programmers.

Cable customers and online video watchers? The proposed deal still concerns consumer advocates like those at public interest group Free Press. “The issue of the cable industry's power to harm online video competition, which is what ultimately sank Comcast’s consolidation plans, are very much at play in this deal,” said Derek Turner, research director for Free Press. “Ultimately, this merger is yet another example of the poor incentives Wall Street’s quarterly-result mentality creates. Charter would rather take on an enormous amount of debt to pay a premium for Time Warner Cable than build fiber infrastructure, improve service for its existing customers or bring competition into new communities.”

The 15 Most Valuable NFL Teams

<p>The Lone Star State easily makes the list, since doesn’t have an individual income tax, but in almost every other area, Texas ranks poorly: It comes in at 38th for corporate taxes, 32nd for property taxes, and 36th for its sales tax of $6.25 percent.

REUTERS/Mike Stone

By Millie Dent

September 10, 2015

The New England Patriots may be reigning Super Bowl champs and have the most successful quarterback-coach pair in NFL history -- Tom Brady and Bill Belichick each have four championship rings with the Pats -- but they’re missing something nevertheless.

As they kick off the season tonight against the Pittsburgh Steelers, the Pats aren’t at the top of the NFL in terms of team value. That title still goes to the Dallas Cowboys, according to an analysis at Forbes.

Dallas must be feeling pretty good about beating New England at something. They had the same regular season record as the Patriots last year, with 12 wins and 4 losses, but ended the season with a loss to the Green Bay Packers in the divisional playoffs, while the Pats went on to win Super Bowl XLIX (that’s 49 for all you non-Romans out there).

Even though the Washington Redskins have been playing pretty pathetically for the past decade, they still come in third. Washington’s NFC East rival, the New York Giants, rank fourth at $2.1 billion.

Here are the 15 most valuable NFL teams:

Dallas Cowboys - $3.2 billion
New England Patriots - $2.6 billion
Washington Redskins - $2.4 billion
New York Giants - $2.1 billion
Houston Texans - $1.85 billion
New York Jets - $1.8 billion
Philadelphia Eagles - $1.75 billion
Chicago Bears - $1.7 billion
San Francisco 49ers - $1.6 billion
Baltimore Ravens - $1.5 billion
Denver Broncos - $1.45 billion
Indianapolis Colts - $1.4 billion
Green Bay Packers - $1.38 billion
Pittsburgh Steelers - $1.35 billion
Seattle Seahawks - $1.33 billion

Top Reads from the Fiscal Times:

A Military Coup in the U.S.? A Surprising Number of Americans Might Support One

$<p>Significant defense savings can be achieved by simply relocating a fraction of our troops in Europe to the United States. The Cold War ended more than 20 years ago, and we no longer need to station troops in Europe to hold the line against the Soviet$

Getty Images

By Millie Dent

September 10, 2015

Imagine you’re watching the evening news, kicking back after a long day in the cubicle. Suddenly a breaking news alert flashes across the screen: “Military Coup Overthrows the Government.” What would be your reaction?

While most Americans say they can’t imagine supporting a takeover of the government by the armed forces, or least aren’t sure about it, a substantial number of people say they can imagine supporting the military in such a scenario.

In a new survey by YouGov, 29 percent of respondents said they can imagine a situation in which they would support the military taking control of the federal government – that translates into over 70 million American adults. Forty-one percent of respondents said could not imagine supporting the military taking over the country.

Republicans (43 percent) were more likely to say they can envision a scenario in which they could support a military coup than Democrats (20 percent). Perhaps that difference is related to having a Democratic president who some critics on the right see as overstepping his power.

Regardless of political ideology, one reason people might support a military coup is because they respect officers in the military far more than they do people in Congress. According to the same YouGov survey, almost three-quarters (70 percent) of respondents believe that military officers want what is best for the country, while only 29 percent think the same of members of Congress.

Lawmakers better shape up or they might be shipped out -- literally.

Top Reads From The Fiscal Times

Sanders Pulls Ahead in Iowa, but a Tougher Clinton Aims to Even the Score

Democratic presidential candidate and U.S. Senator Bernie Sanders addresses the Democratic National Committee (DNC) Summer Meeting in Minneapolis, Minnesota

By Martin Matishak

September 10, 2015

A new poll unveiled Thursday finds populist Bernie Sanders squeezing past Hillary Clinton for the first time as the preferred choice among likely Iowa caucus-goers.

The survey by Quinnipiac University shows the Vermont lawmaker receiving 41 percent, while Clinton garnered 40 percent. The figures put Sanders’ lead well within the poll’s 3.4 percent margin of error, but the numbers serve as another indication of how tight the Democratic primary has become, especially in Iowa where Clinton has long maintained an advantage.

The poll found another 12 percent of voters would support Vice President Joe Biden, who has yet to decide if he will enter the 2016 race. Former Maryland Governor Martin O’Malley received 3 percent, and the same number were undecided.

While many could view the survey as the latest sign Clinton’s campaign is flailing, the timing of the poll could prove crucial.

The study was conducted between August 27 and September 8. That was the same day the former secretary of State told ABC News that using a personal email account while in office was a mistake and that she is sorry for it.

“I do think I could have and should have done a better job answering questions earlier. I really didn’t perhaps appreciate the need to do that,” Clinton said. “What I had done was allowed, it was above board. But in retrospect, as I look back at it now, even though it was allowed, I should have used two accounts. One for personal, one for work-related emails. That was a mistake. I’m sorry about that. I take responsibility.”

The interview marked the first time she apologized for her unique email arrangement. Questions over Clinton’s use of a private server have dogged her candidacy since she entered the White House race earlier this year.

Republicans have used the controversy surrounding the server to paint Clinton as untrustworthy and unfit to serve in the White House.

Indeed, Thursday’s poll found that while Clinton is still liked among Democratic voters who believe she would make a good leader, Sanders fares better on the question of trustworthiness.

The Quinnipiac poll also closed before Clinton gave a muscular foreign policy speech at the Brookings Institution on, among other things, the Iran nuclear deal.

“We should anticipate that Iran will test the next president,” she said. “They'll want to see how far they can bend the rules.”

“That won't work if I'm in the White House. I'll hold the line against Iranian noncompliance,” Clinton added.

On the softer side of things, Clinton’s interview on “The Ellen DeGeneres Show” will air Thursday afternoon. The appearance will give her a chance to connect with female voters who are the backbone of her support.

Taken together, the various actions could put Clinton back atop the polls, at least in Iowa, and help her gain back ground she lost to Sanders in New Hampshire as well.

Top Reads From The Fiscal Times:

College Students Say They’re Good with Money. Do You Believe Them?

iStockphoto

By Beth Braverman

September 10, 2015

A new study confirms it: College students think they know everything, at least when it comes to personal finance.

Nearly 60 percent of college students said that they had good or excellent financial literacy skills, according to a study released today by the American Institute of CPAs.

Despite that confidence, less than half of students say they stick to a monthly budget, nearly 40 percent had borrowed money from friends or family and more than 10 percent had missed a bill payment.

Of those surveyed, 99 percent said that personal financial management skills were important, but only a quarter said they seek out information on personal finance and incorporate it into their spending and saving habits.

“For many students, college is their first time making financial decisions,” Ernie Almonte, chairman of the AICPA’s Financial Literacy Commission said in a statement. “With this opportunity comes serious responsibility, and if they aren’t making informed, intelligent decisions it can have a negative impact on the rest of their financial lives.”

College students without a strong foundation in personal finance are more likely to take on risky debt or make poor saving decisions. But most students aren’t getting the education they need before they get to campus.

Just 17 states require high school students take a personal finance course, and only six require testing of personal finance concepts, according to the Council for Economic Education. Three out of four American teens can’t even make sense of a paystub.

But hey, at least they’re confident.

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How Can You Tell There Are Russian Troops in Syria? Just Look for Some Soldier Selfies

By Millie Dent

September 9, 2015

Although Russian President Vladimir Putin has denied that he is sending troops to Syria, selfies taken by Russian soldiers and posted on social media are telling a different story.

Russian investigative journalist Ruslan Leviev reports that an increasing number of experienced Russian troops have been deployed to a naval maintenance facility in Tartus, along Syria’s Mediterranean coast. His source? Status updates and photos posted on Russia’s two biggest social networking sites by members of the 810th marine brigade, an infantry force in the Russian navy.

One photo Leviev found is of a career soldier named Mazhnikov, who appears to be at the naval facility in Syria. Another soldier, Anatoly Golota, also a member of the 810th brigade, updated his status on the Russian version of Facebook with the words, “Off to Syria :)).”

Russia has not denied that it’s been supplying weapons to the Syrian government and helping train the Syrian military. But Putin knows that combat troops are a different story.

The naval maintenance facility at Tartus is small, and in the past has been manned by just a handful of personnel. Leviev reports that the number of troops stationed at the facility is growing, and the troops are experienced contract soldiers, not draftees.

Videos uploaded to social media sites have raised concerns that Russian troops might be involved in combat inside Syria, according to an article in Foreign Policy. However, beyond the footage, which shows a Russian-made BTR-82A armored vehicle firing its gun in Syria, no other substantial evidence of active combat involving Russian troops has been found.

While the marines may or may not be directly involved in the fighting, the presence of Russian troops in Syria shows how hard Putin is pressing for a victory by the Assad regime. Now if he can just teach his soldiers how to avoid giving themselves away on social media.

Top Reads From The Fiscal Times

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