Time Warner Cable Inc (NYSE:TWC) merger prospects have opposed Patrick Drahi with his former boss, John Malone.
Just a few days after the Altice SA holding firm made an entry venture into the United States, Drahi’s firm made a bold move for a merger with Time Warner Cable for $48 billion. The announcement brought an interesting billionaire fight for Malone and Drahi as Drahi has been encroaching on Malone’s territory.
The fight brew up a competition where Malone’s company, Charter Communications also decided to bid for the acquisition. The result is a tug of war between both firms as they try to outdo each other. This is the second time in a year that Malone’s Company is bidding to acquire Time Warner Cable.
Analysts expect the three companies to keep holding talks over the weekend to discuss the proceedings. However, it is expected that Time Warner Cable will select the most suitable candidate by the end of next week. However, it is not clear whether the cable company will accept any terms. Some sources claim that the plans may fail to take root.
Many industries have been recently characterized by mergers. The cable industry has also taken up the trend, and such acquisitions are very promising. The increasing demand for better services in the Pay-Tv sector has led to harsh competition among major players such as Netflix and Hulu.
There are rumors that another third party is looking to get into the mix. Charter Communications, Inc. (NASDAQ:CHTR) has plans to go at it again after Time Warner Cable declined their offer for an acquisition back in 2014. It had also bet on Comcast but the proposition collapsed a month ago after regulations placed hurdles on the merger.
Drahi is worth about $22 billion which is almost double what Malone is worth. It is however noteworthy that the two have grown to be so competitive. At one point in time, Malone sold Drahi one of his companies.