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SEC Filings

CHARTER COMMUNICATIONS, INC. /MO/ filed this Form 425 on 06/16/2015
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the future. And so, all of that was true at Charter and yet, it was low penetrated because satellite had been successful against them. The company had actually gone bankrupt…
RM: Right.
TR: …and underinvested. And I thought what better opportunity, if you believe...
RM: Right.
TR: …in the business, you want to go to the worst place possible and try to fix it up.
RM: Yes.
TR: You create the most value and Charter has created a lot of value.
RM: Yes.
TR: So here we are today.
Segment Two: The TWC-Charter Combination
RM: You’ve been at least thinking about a Time Warner Cable-Charter combination for a couple of years.
TR: Right.
RM: What do you find so compelling about this combination that kind of made it like your Moby Dick.
TR: One, I think it’s a great business, and so the more of it you can have in one, the more of a great business it is. I mean that’s the simplest part of it. But, you know, I think we have a different kind of future than the past - a better one, in fact. But it’s going to require different kinds of investment - at scale. As pure play cable operators, which is what this new company is really. I mean we’ll have some regional sports channels but, fundamentally, the company is a pure play cable company.
You know we’ve had a lot of pressure from programming prices. We have not controlled those costs, which has put pressure on our customers. I think that some of the institutional forces that created that are going away to some extent with over-the-top television. On the other hand, we built a great broadband business but, as an industry, because we kept our legacy analog business and tried to morph into digital at the same time, our satellite competitors actually have better perceptions in the eyes of consumers then we do. And yet we have the better network and we have the capability. And in order to get it in a position to unleash all of its power, we need more investment. And we need that investment at scale; we need to get the right prices for equipment - set-top boxes, modems. And then the cloud-based infrastructure is going to create all the new products we’re going to sell going forward. And, therefore, be able to sell at lower prices and drive more customer relationships. And customer relationships are where the value in the business comes from. We have this physical network, the more things we attach to it, the lower the cost of each customer is going forward.
RM: Absolutely.