Apple (AAPL) could grab up to 20 million video subscribers with its own service by 2020, but cable TV companies would weather the storm owing to their dominance in broadband and their growth in the business market, says Deutsche Bank, which initiated coverage of cable stocks. Analyst Bryan Kraft gave buy ratings to Charter Communications (CHTR), Time Warner Cable (TWC) and Liberty Broadband (LBRDA), while putting holds on Comcast and Cablevision
Comcast (CMCSA) has competition within the cable TV industry, thanks to Charter Communications’ pending acquisitions of Time Warner Cable (TWC) and Bright House Networks, and their rivalry could play a part in what set-top box, broadband, wireless and other technologies will be offered consumers. On Tuesday, Charter (CHTR) announced it had agreed to buy Time Warner Cable for $56 billion. Comcast pulled the plug on its proposed merger with TWC in
Charter Communications’ (CHTR) $55 billion acquisition of Time Warner Cable, announced on Tuesday, will reward TWC shareholders with a nearly 50% premium over what Charter offered to pay for the company in January 2014, and more than 20% over what Comcast had agreed to pay in its doomed acquisition bid. Charter early Tuesday announced it had agreed to pay $195.70 per share for Time Warner Cable (TWC), with $100 in cash and the rest in stock. TWC