Comcast Corp. and Charter Communications Inc. have discussed a joint bid for Time Warner Cable Inc. that would divide its assets between them, people with knowledge of the matter said.
The talks between Comcast and Charter have been preliminary, and a Time Warner Cable breakup is one option amid several, said the people, who asked not to be identified because the matter is private. Parts of Time Warner Cable would complement each company’s coverage area, the people said.
Time Warner Cable, the second-largest U.S. cable company, is emerging as an acquisition target amid renewed attempts to consolidate the industry. Companies are looking to bulk up to get more negotiating leverage with networks. A joint deal would solve issues Comcast and Charter would face if they were to pursue Time Warner Cable separately, the people said.
Breaking up Time Warner Cable would result in a smaller deal for Comcast than buying it outright, thus muting regulatory concerns. Charter wouldn’t need to raise as much money to complete a purchase, making an acquisition more palatable, the people said.
