US: The ulterior motive for Charter’s $38B Time Warner pursuit

After Charter Communications launched a major $38 billion bid to acquire its larger rival Time Warner Cable, experts say the efforts are part of a broader effort by Charter to “future-proof” the company, readying for the growing dependence on Internet and the ailing dependence on television.

According to reports, Time’s Internet services ere 12 percent more profitable than its cable services, despite cable services still raking in more revenue for the company. The trend, reports say, shows how Internet’s dominance is surely creeping up on the once-dominance television.

While Time has so far rejected Charter’s acquisitions offers, Charter said it would directly approach shareholders with the deal. It’s part of efforts, some experts say, to ensure that Charter is ready for the Internet-dominance age.

Should the merger succeed, the combined company would be the nation’s number-three provider of television and Internet services.

Further, reports say, the combined company would have more bargaining power with online video streaming companies like Netflix.

Last month’s federal appeals court ruling on net neutrality means that providers can now charge streaming companies like Netflix for faster speeds and priority services.

Full Content: Tech Land

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