One cable company bought a network, so it must be a great idea for every cable operator to buy a network, right?
Time Warner Cable CEO Glenn Britt was compelled to explain, yet again, that until just a few short months ago, TWC was in fact part of a large content-producing network, and the presumed synergies never really materialized. This time the inquisitor was from Bloomberg.
From the moment Comcast, the country’s largest MSO, announced it was going to purchase NBC Universal, TWC, the country’s second-largest MSO, has been fielding questions about finding a similar deal. From the beginning, TWC has been saying it plans to concentrate solely on distribution.
“Investors are telling us they like pure plays, so I don’t see us changing,” Britt repeated to Bloomberg.
To that end, Britt said, TWC would consider growing through acquisition – Cablevision and Charter Communications were mentioned as possible grabs in the story – if the price were right.
Britt said he expects further consolidation in the cable industry. “The industry will keep consolidating because there are economies of scale, and we’re competing against bigger players,” Britt told Bloomberg. “It’s hard to predict who’s going to sell.”
“Traditionally, cable is a great cash flow business,” Britt added. “These types of businesses that generate cash should pay a dividend.”
