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Time Warner Cable Essay

972 words - 4 pages

Time Warner Cable Inc. (TWC), formerly Warner Cable Communications and sometimes colloquially referred to as simply Time Warner, is an American cable telecommunications company that operates in 29 states and has 31 operating divisions. It is the second largest cable company in the U.S. behind only Comcast, which has agreed to acquire TWC pending regulatory approval. Its corporate headquarters are located in the Time Warner Center in Midtown Manhattan, New York City, with other corporate offices in Stamford, Connecticut; Charlotte, North Carolina; and Herndon, Virginia. Time Warner Cable serves customers in the following 29 states: Alabama, Arizona, California, Colorado, Hawaii, Idaho, ...view middle of the document...

It also includes the remnants of the defunct QUBE interactive TV service. In 1995, the company launched the Southern Tier On-Line Community, a cable modem service now known as Road Runner High Speed Online. That same year, talks began that would later result in Warner's acquisition of Paragon Cable. "Warner Cable" was changed into "Time Warner Cable" in 1990.
Time Warner retained Time Warner Cable as a subsidiary until March 2009, when it was spun out as an independent company. Prior to the spin-out, Time Warner had held an 84% stake in Time Warner Cable. Non-Time Warner shareholders received 0.083670 shares for each share already owned. This move made Time Warner Cable the largest cable operator in the United States owned solely by a single class of shareholders (without supervoting stock).
It was first reported in September 2013 that Time Warner Cable was exploring a sale of the company, possibly to Charter Communications. However, on November 22, 2013, reports surfaced that Comcast expressed interest in acquiring Time Warner Cable. Both companies are said to be placing bids for the company. Charter reiterated its interest in purchasing Time Warner Cable and increased its bid on January 14, 2014. On February 12, 2014, it was reported that Comcast had reached a deal to acquire TWC in an overall deal valued at $45.2 billion, pending regulatory approval.
As of second quarter 2009, there were 14.6 million basic cable subscribers, 8.8 million Digital cable subscribers, 8.7 million Road Runner residential subscribers, 2.5 million DVR subscribers, and 4.5 million residential Digital Phone subscribers, which makes it the fifth-largest landline phone provider in the United States. As of 2013, Time Warner Cable's business division had the second largest business-facing enterprise by revenue (of cable providers who offer business services), with $1.7 billion in revenue as of the third quarter of 2013. Total revenue for 2012 was $1.9 billion. As of 2014, Time Warner...

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