Comparison Between Charter And Time Warner Cable

Corporate strategy is only as effective as the research and analysis of the organization’s market in which they operate (Parnell, 2014). In fact, financial performance, mergers and acquisitions, human resource management, and allocation of resources are all integral parts of the corporate level strategy (Bradley, 2016). Another important aspect is identification of the organization’s corporate profile. Do they operate in a single industry? Do they operate in a related or unrelated industry? These are questions that must be answered.

On June 25, 2015, a public interest statement was filed with the Federal Communications Commission (FCC), which began the current merger and acquisition journey between Charter, Time Warner Cable, and Bright House …show more content…
Ultimately, this is huge for the organizations and their current and future customers. At Time Warner Cable, they reported net income attributable to shareholders of $437 million (Steel, 2015). At Charter, the company reported net income of $54 million (Steel, 2015). As a result of the merger between Charter and Time Warner:

Charter will provide $100 in cash and shares of the new public parent company (“New Charter”) equivalent to 0.5409 shares of CHTR for each Time Warner Cable share outstanding.
Charter will provide an election option for each Time Warner Cable stockholder, who will receive all stock, to receive $115 of cash and New Charter shares equivalent to 0.4562 shares of CHTR for each Time Warner Cable share they own. (Time Warner, 2016).
The Charter and Bright House Networks Partnership, as amended, provides for Charter and Bright House Networks to form a new partnership of which New Charter will own between approximately 86% and 87% (Time Warner, 2016). Markedly, the consideration to be paid by Charter will include common and convertible preferred units in the Partnership, in addition to $2 billion in cash (Time Warner,