The executives who helped engineer the union of AT&T and Time Warner will have you know that the cable company with a similar-sounding name has nothing to do with this deal.
It’s a common — and at times amusing — confusion. But the companies took a decidedly serious tone when they filed a disclosure with the Securities and Exchange Commission late Monday after the merger was announced:
“Time Warner Inc. should not be confused with Time Warner Cable, which is a distinct, independent company owned by Charter Communications. In 2008, Time Warner and Time Warner Cable announced a complete legal and structural separation of the companies. That separation was completed in 2009, and the companies have been completely separate and independent entities ever since.”
It’s unlikely this mistake has caused undue move in stock prices, given that the ticker of the cable company’s new owner, CHTR, looks nothing like Time Warner’s ticker, TWX. As Bloomberg View’s Matt Levine points out, all sorts of fun can ensue when people, or computer programs, mix up tickers.
The division of companies sounds simple enough — the cable company makes it possible to watch cable while the media company makes the shows you watch on cable.
Read full story at http://blogs.wsj.com/moneybeat/2016/10/25/dont-bring-time-warner-cable-into-this-att-deal/
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