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|CHARTER COMMUNICATIONS, INC. /MO/ filed this Form 425 on 02/25/2016|
Filed by Charter Communications, Inc.
Pursuant to Rule 425 under the Securities Act of 1933
and deemed filed pursuant to Rule 14a-6
under the Securities Act of 1934
Subject Company: Time Warner Cable Inc.
Commission File No. 001-33335
The following is information made available online on certain Charter social media channels.
The Anti-Merger Merger
As a cable company, Charter has always been different.
We’re committed to offering the most innovative products and faster internet speeds at a great value, and we’ve been vocal advocates for an open Internet and superior customer service.
We’re excited about the opportunity to combine with Time Warner Cable and Bright House Networks to bring our offerings into even more Americans’ homes, but we understand why a merger among cable companies might make some people skeptical at first.
The good news is that this merger is different too.
New Charter will be significantly smaller than Comcast is today, and will face strong competition from the likes of AT&T, CenturyLink and Google-all of whom are continuing to grow their footprint everywhere, including the same areas that our companies already offer service.
New Charter would serve less than 21 percent of the wired broadband market and 23 percent of subscribers receiving speeds of 25 Mbps and above, a smaller share than Comcast has today. To put this in perspective, when Comcast attempted to buy Time Warner a few years ago, the combined company would have had more than twice the high speed broadband customers New Charter will have.
In total, New Charter will only represent 17 percent of the TV market (putting it in third place behind Comcast and AT&T) and 23% of the total Internet market. Our total customer base will number about 23.9 million, which is less than 20% of AT&T’s 120.6 million, and significantly lower than what would have been the Comcast-Time Warner’s 42 million customers.
So the way we see it, New Charter will grow enough to provide real competition for those at the very top, while giving a louder voice to our values of customer service and innovation.
We’re not alone in thinking that.
Netflix, which helped lead opposition to the Comcast-Time Warner merger because they believed that merger would punish online streaming companies, has offered full-throated support for New Charter because the new company will level the playing field for online video, making sure that customers with data-hungry apps and products like Netflix or Roku devices aren’t penalized for consuming content outside their traditional cable boxes.
As reported by the New York Times, “Reed Hastings, Netflix’s chief executive, said that it would be a ‘tremendous positive’ for the streaming industry because of Charter’s agreement to a ‘multiyear, strong net neutrality policy’ across its new, bigger footprint…‘We think it would be a huge step forward for U.S. policy’ for streaming services,” Mr. Hastings said.