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SEC Filings

PREM14A
CHARTER COMMUNICATIONS, INC. /MO/ filed this Form PREM14A on 06/26/2015
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and certain other companies, LionTree calculated valuation multiples, including enterprise value and adjusted enterprise value as a multiple of estimated 2015 Adjusted EBITDA and estimated 2015 Adjusted EBITDA minus CapEx. These multiples were then compared to the multiple implied by the mergers both with and without giving effect to the transaction effects. The list of selected companies and the related multiples for such selected companies and for Charter are set forth below, and compared to the multiples implied by the mergers (with and without the transaction effects):

Implied Multiples:

 

     Enterprise Value
as a Multiple of
     Adjusted Enterprise Value
as a Multiple of
 
     2015E
Adjusted
EBITDA
     2015E
Adjusted
EBITDA
minus Capex
     2015E
Adjusted
EBITDA
     2015E
Adjusted
EBITDA
minus Capex
 

Charter (standalone)

     9.8x         19.4x         8.9x         17.6x   

Comcast (cable only)

     7.0x         10.4x         7.0x         10.4x   

TWC

     8.5x         16.8x         8.3x         16.4x   

Cablevision (cable only)

     7.5x         12.8x         7.5x         12.8x   

Mergers

     9.3x         18.4x         9.1x         18.0x   

Mergers with transaction effects

           8.2x         14.4x   

Selected Transactions Analysis. LionTree calculated certain valuation multiples based on the estimated purchase prices paid in the following selected publicly announced U.S. cable industry transactions from 2010 to 2015. The selected transactions consisted of publicly announced transactions involving target companies primarily engaged in the U.S. cable industry with transaction values in excess of $500 million. The calculated multiples included transaction value as a multiple of (i) estimated Adjusted EBITDA for the last twelve-month period, or LTM, and (ii) estimated Adjusted EBITDA for the next twelve-month period, or NTM, in each case, both before and after giving effect to the present value of tax attributes of the target company. The list of selected transactions is set forth below:

 

Announcement Date

 

Target

 

Acquiror

June 2010

  Bresnan Broadband Holdings, LLC   Cablevision Systems Corporation

November 2010

  Mediacom Communications Corporation   Take Private

August 2011

  Insight Communications Company Inc.   Time Warner Cable Inc.

June 2012

  Wave Division Holdings LLC   Oak Hill Capital Partners

July 2012

  Atlantic Broadband LLC   Cogeco Cable Inc.

July 2012

  Suddenlink Communications   BC Partners Limited / CPP
Investment Board

February 2013

  Bresnan Broadband Holdings, LLC   Charter Communications Inc.

March 2013

  Charter Communications, Inc.   Liberty Media Corporation

February 2014

  Time Warner Cable Inc.   Comcast Corporation

April 2014

 

Certain Assets of

Time Warner Cable and Comcast

  Charter Communications Inc.

March 2015

  Bright House Networks   Charter Communications Inc.

May 2015

  Suddenlink Communications   Altice SA

 

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