Charter Communications acquired Time Warner Cable in a $55.1 billion deal closed in May 2016. The acquisition created a leading broadband and cable company serving over 25 million customers across 41 states. The deal was valued at $78.7 billion, or an enterprise value to EBITDA multiple of 8.3 times TWC's 2015 EBITDA. The valuation was based on comparable company multiples, comparable acquisition multiples, and a discounted cash flow analysis of TWC's projected cash flows over five years. The acquisition was aimed at improving competitiveness and customer service in TWC markets through Charter's technologies and operating strategy.
The document discusses the pay TV industry in Korea. It notes that pay TV operators provide stable cash flows through monthly subscription fees. The transition to digital broadcasting is creating new opportunities for pay TV providers to diversify revenue streams through video on demand and transaction-based services. The document recommends maintaining an overweight stance on media and telecom services in Korea, noting that the pay TV industry has reached an inflection point where earnings are expected to recover as the digital transition ends and consolidation occurs.
This proposal outlines a new cable network called "Knockout TV" that will provide 24/7 coverage of boxing. The network aims to grow interest in boxing by targeting males aged 18-40 and providing extensive programming, including live fight coverage, news and analysis shows, historical fight replays, and documentaries. It will differentiate itself from competitors like HBO by being the only network fully dedicated to boxing. The proposal discusses the network's programming, target audiences, positioning, and plans for promotion. It also outlines several original shows that will drive viewership and revenue.
Moneyball The Current State Of The Sports Media LandscapeDavid Bank
This document provides an analysis of the sports media landscape and key issues facing media companies. It finds that while sports rights fees are increasing rapidly, headlines can be misleading as actual cost growth after escalators is more moderate. It also discusses the proliferation of new sports channels and increasing revenues from retransmission fees and affiliate fees that help offset rising rights costs. The document analyzes various media companies and their ability to expand margins despite rising sports rights expenses.
Network TV's (Not So Big) Threat From Online Video A Deep DiveDavid Bank
This document analyzes the potential threat that online video advertising poses to traditional network television advertising. It finds that:
1) Only about 16% of total online video minutes can be considered "premium" content suitable for major advertisers, and over 50% of this comes from publishers that are extensions of traditional media companies.
2) The total available premium online video inventory is estimated to be equal to only around 10% of major broadcast network advertising minutes among 18-49 year olds, and less than 1% of total cable network inventory.
3) Pricing of online video advertising is currently not low enough compared to television to attract significant advertising dollars away from traditional sources.
Sms Marketing Execution Plan 220502 Short Version V2zuikizen
The document discusses an SMS marketing execution plan for a telecommunications company. It outlines the opportunity for SMS revenue growth given trends of increasing adoption internationally. A three-part plan is proposed: 1) Upgrade the SMS platform and establish interoperability to remove barriers to adoption. 2) Target high potential user segments and focus on peer-to-peer messaging and select content offers. 3) Implement an aggressive communications program to educate customers and introduce pay-per-message pricing to drive usage. The strategy aims to generate $88 million in SMS revenues over three years.
The document summarizes key points about the broadcasting industry. It finds that retransmission consent fees paid by cable companies to broadcasters, currently around $1 per subscriber per month, are expected to steadily increase to around $2 per subscriber in the next 4-5 years. This will provide the broadcasting industry with an additional $4 billion in revenue over this period. Consolidation in the industry is being driven by the desire for scale to gain negotiating leverage with cable companies over fees. Local broadcasters may also be able to monetize their spectrum if the FCC commences an incentive auction in 2015 as anticipated.
Battle of the TV Network Bundle You Get What You Pay For (Sometimes Even Less)David Bank
This document provides an analysis of the changing TV distribution landscape, including the rise of lighter cable bundles and over-the-top (OTT) streaming services. It finds that while total pay-TV subscribers have remained flat, most major cable networks have lost 1-3 million subscribers as consumers "cord shave" and move to lighter bundles. However, the cost savings of lighter bundles or OTT services are not that compelling when considering lost content access and utility. The document examines various new distribution models like Sling TV and their potential impact on the media ecosystem. It concludes that cord shaving is already affecting networks and affiliate fee growth, but a rapid, widespread adoption of OTT light bundles that significantly alters the industry is
The document discusses the pay TV industry in Korea. It notes that pay TV operators provide stable cash flows through monthly subscription fees. The transition to digital broadcasting is creating new opportunities for pay TV providers to diversify revenue streams through video on demand and transaction-based services. The document recommends maintaining an overweight stance on media and telecom services in Korea, noting that the pay TV industry has reached an inflection point where earnings are expected to recover as the digital transition ends and consolidation occurs.
This proposal outlines a new cable network called "Knockout TV" that will provide 24/7 coverage of boxing. The network aims to grow interest in boxing by targeting males aged 18-40 and providing extensive programming, including live fight coverage, news and analysis shows, historical fight replays, and documentaries. It will differentiate itself from competitors like HBO by being the only network fully dedicated to boxing. The proposal discusses the network's programming, target audiences, positioning, and plans for promotion. It also outlines several original shows that will drive viewership and revenue.
Moneyball The Current State Of The Sports Media LandscapeDavid Bank
This document provides an analysis of the sports media landscape and key issues facing media companies. It finds that while sports rights fees are increasing rapidly, headlines can be misleading as actual cost growth after escalators is more moderate. It also discusses the proliferation of new sports channels and increasing revenues from retransmission fees and affiliate fees that help offset rising rights costs. The document analyzes various media companies and their ability to expand margins despite rising sports rights expenses.
Network TV's (Not So Big) Threat From Online Video A Deep DiveDavid Bank
This document analyzes the potential threat that online video advertising poses to traditional network television advertising. It finds that:
1) Only about 16% of total online video minutes can be considered "premium" content suitable for major advertisers, and over 50% of this comes from publishers that are extensions of traditional media companies.
2) The total available premium online video inventory is estimated to be equal to only around 10% of major broadcast network advertising minutes among 18-49 year olds, and less than 1% of total cable network inventory.
3) Pricing of online video advertising is currently not low enough compared to television to attract significant advertising dollars away from traditional sources.
Sms Marketing Execution Plan 220502 Short Version V2zuikizen
The document discusses an SMS marketing execution plan for a telecommunications company. It outlines the opportunity for SMS revenue growth given trends of increasing adoption internationally. A three-part plan is proposed: 1) Upgrade the SMS platform and establish interoperability to remove barriers to adoption. 2) Target high potential user segments and focus on peer-to-peer messaging and select content offers. 3) Implement an aggressive communications program to educate customers and introduce pay-per-message pricing to drive usage. The strategy aims to generate $88 million in SMS revenues over three years.
The document summarizes key points about the broadcasting industry. It finds that retransmission consent fees paid by cable companies to broadcasters, currently around $1 per subscriber per month, are expected to steadily increase to around $2 per subscriber in the next 4-5 years. This will provide the broadcasting industry with an additional $4 billion in revenue over this period. Consolidation in the industry is being driven by the desire for scale to gain negotiating leverage with cable companies over fees. Local broadcasters may also be able to monetize their spectrum if the FCC commences an incentive auction in 2015 as anticipated.
Battle of the TV Network Bundle You Get What You Pay For (Sometimes Even Less)David Bank
This document provides an analysis of the changing TV distribution landscape, including the rise of lighter cable bundles and over-the-top (OTT) streaming services. It finds that while total pay-TV subscribers have remained flat, most major cable networks have lost 1-3 million subscribers as consumers "cord shave" and move to lighter bundles. However, the cost savings of lighter bundles or OTT services are not that compelling when considering lost content access and utility. The document examines various new distribution models like Sling TV and their potential impact on the media ecosystem. It concludes that cord shaving is already affecting networks and affiliate fee growth, but a rapid, widespread adoption of OTT light bundles that significantly alters the industry is
Alan M. Miroslaw has over 20 years of experience in analytics, finance, and sales roles in the cable television industry. He currently serves as a Senior Manager of Sales Analytics and Marketing at Time Warner Cable/Charter, where he creates reporting tools to measure sales team performance, analyzes customer data to identify sales opportunities, and develops budgets and quotas. Previously he held various finance and analytics roles where he developed models and reports, implemented new systems, resolved data issues, and analyzed financial performance across different regions.
http://profitabletradingtips.com/trading-investing/sound-stock-trading-practices
Sound Stock Trading Practices
There are a number of potentially profitable day trading strategies and strategies for medium and longer term trades. But, in order to reliably turn strategy into profits year in and year out, one needs to engage in a number of sound trading practices. Sound stock trading practices for the day work as well for the longer term. Sound stock trading practices start with not being greedy and taking a little money off the table as profits mount up. They include managing fear and greed and sound stock trading practices always include both a clear head for fundamentals and both eyes on the market.
Take a Little Money off the Table
A confirmed day trader may say that setting your trading stops is all that is necessary to protect profits and guard against loss. However, if you are staying with a trade over night the stock may gap up or down in the morning and not only erase your profits but leave you with substantial losses. If you are not going to be able to control the trade for any period of time take a little money off the table to guarantee your gains. Likewise, you may be in the middle of a profitable trading day when your internet connection goes down. If you have set your stops in time you may be OK. But, you are in no position to trade until your connection is up and running again. Sound stock trading practices include taking a little money off the table when you are winning. After all, you have not earned any money until that money in hand, or at least back in your brokerage account and out of any trades.
Tinashe seeks a permanent job in public health services to provide excellent client service and enact positive change. He has skills in healthcare, computers, electrical work, cooking, and research. For experience, Tinashe was captain of his high school basketball team and led Scripture Union as an evangelist. He also worked on the technical crew of Christ Embassy Church Botswana, assisting with lighting, sound, video recording, and event set-up. Tinashe completed secondary education in Zimbabwe and can provide references from his former schools and church.
- Charter Communications acquired Time Warner Cable in May 2016 in a deal valued at $78.7 billion.
- The acquisition enhanced Charter's competitiveness by making it one of the largest television providers in the US alongside Comcast, AT&T, and Verizon.
- It also provided an opportunity for Time Warner Cable to improve its poor customer satisfaction ratings.
Guia do projeto discente revolução dos bichos módulo comunicação e sociedade ...pablonaba
Este documento descreve as diretrizes para um projeto de adaptação do livro "A Revolução dos Bichos", de George Orwell, para o público juvenil. Os alunos serão divididos em equipes multidisciplinares que deverão elaborar uma história ilustrada de até 20 páginas mantendo a essência da obra original. O projeto será avaliado por várias disciplinas usando critérios como adequação ao público-alvo, coerência textual e qualidade das ilustrações.
The document discusses the process of designing a database in Microsoft Access 2013. It covers the discovery phase where existing and missing data sources are identified. Data is divided into logical tables that are planned and designed. Appropriate data types and field sizes are assigned. Relationships between tables, such as one-to-many, are created. The data is then normalized through several normal forms to eliminate anomalies and inconsistencies. The goal is to organize the data efficiently and establish referential integrity between related tables.
This document provides an overview of ROS and Gazebo for robot simulation. It introduces ROS as a framework for robot software development that encourages code reuse. Key ROS concepts covered include nodes, topics, services, and packages. The document demonstrates creating simple ROS packages and nodes that publish, subscribe and use custom messages. Gazebo is introduced as a 3D physics simulator for robot control and environment simulation. Example demonstrations are provided on using Gazebo and ROS for SLAM with the PR2 robot in Rviz. Resources for further learning about ROS and Gazebo are also listed.
O documento fornece uma introdução às estratégias de marketing digital, discutindo a importância de entender os dados demográficos dos clientes, criar perfis de usuários e desenvolver uma jornada do cliente para direcionar táticas de aquisição, conversão e retenção. Também aborda a importância de testes e métricas para otimizar continuamente as estratégias.
Mobile Payments Index 2016 [Travel Edition]Filipp Paster
The Adyen Mobile Payments Index reveals huge growth opportunities for travel merchants willing to invest in mobile payments. This report draws on Adyen’s data and real-life examples to provide practical advice for merchants looking to grow market share with mobile payments.
Topics: Mobile Commerce
Industry: Travel & Leisure
Comcast has room to lower its WACC by taking on more debt given its low debt-to-equity ratio compared to industry averages. The proposal suggests Comcast issue $15 billion or $25 billion in new 10-year bonds which could lower its WACC from 9.04% to between 8.66-8.44% while increasing its tax shield and still maintaining a debt-to-equity ratio below the industry average. The additional capital would be used to make acquisitions to strengthen its position against emerging streaming competitors and invest in improving its own streaming platform and services.
Provides a clear picture of the current internet and cable industry in the US and where Comcast stands. Also speaks about the financial aspects of Comcast and where it needs to improve.
A10 Networks held a conference call to discuss its second quarter 2016 financial results. The company reported record revenue of $57.1 million, a 20% increase year-over-year. A10 also significantly reduced its net loss per share compared to the previous year. Management highlighted strong growth in the U.S., Japan, and Asia Pacific regions. A10 recently acquired Appcito to expand into the cloud-native application delivery market with a subscription-based service. Management believes the company is well-positioned for continued growth and progress toward profitability in the fourth quarter.
The study found that on average:
- Publishers received 51% of advertiser spend, ranging from 49-67% between publishers
- 15% of advertiser spend was "unattributable" and could not be traced in the supply chain
- There were significant challenges in obtaining the necessary data to map supply chains due to a lack of standardization around data sharing and formatting between parties
WPP's data division Kantar and comScore announced a strategic global partnership to provide cross-media audience and campaign measurement. As part of the deal, WPP will acquire a 15-20% stake in comScore through an equity investment and tender offer. The partnership will combine the companies' data, products, and panels to provide new measurement capabilities outside the US. The alliance is intended to simplify deployment of global measurement and accelerate creation of new services.
This document brings together a set
of latest data points and publicly
available information relevant for
Hybrid Cloud Infrastructure
Technology. We are very excited to
share this content and believe that
readers will benefit from this
periodic publication immensely.
Supplemental Slides to Q3 2016 Earnings CalltribuneIR
The document discusses tronc's Q3 2016 earnings call supplemental slides. It includes the following key points:
- Revenue was down 6.8% in Q3 2016 compared to 2015, while adjusted EBITDA was up 29.2% due to expense mitigation efforts.
- The company has strengthened its balance sheet with increased cash of $146M since 2015 and reduced debt and pension obligations.
- Digital revenue and unique visitors are growing, while the company focuses on content optimization, technology enhancements, and establishing a sales infrastructure.
- Full year 2016 guidance forecasts revenue of $1.61-1.63B and adjusted EBITDA of $172-177M.
This document provides an overview and quantitative analysis of the proposed merger between Comcast and Time Warner Cable. It summarizes the key details of the merger, outlines the companies involved, and calculates the Herfindahl-Hirschman Index (HHI) for pay-TV and broadband markets both before and after the merger. The HHI calculations show a significant increase in market concentration post-merger, indicating potential antitrust issues that could challenge regulatory approval of the deal.
Time Warner Cable is proposing to revolutionize the cable TV industry by offering "a la carte" programming packages that allow customers to choose individual channels rather than bundled packages. This would give customers more control over costs by only paying for desired content. While networks currently rely on bundled revenue, TWC believes it can negotiate new affiliate deals under this model using its large subscriber base. However, TWC also has weaknesses like the worst customer service ratings in the industry currently. It is working to improve its image and address common complaints like vague installation windows.
PwC Entertainment, media and communications deal insightsQ3 2015PwC
Deal volumes continue to stay the course with deal values declining in the absence of cable megadeals. PwC provides a summary of third quarter 2015 deal activity, megadeal activity and an outlook for key sectors.
Comcast plans to merge with Time Warner Cable to become a leading technology and media company. The objectives are to provide faster innovation, better products and communicate the value of the merger to stakeholders. Key stakeholders include subscribers, employees, investors, government regulators and competitors. There are risks such as increased market control drawing regulatory scrutiny, and opportunities like competing against satellite providers. Metrics will measure social media sentiment, media coverage, sales reports and website traffic to assess the merger's success.
This document brings together a set of latest data points and publicly available information relevant for IOT & AR. We are very excited to share this content and believe that readers will benefit immensely from this periodic publication immensely.
Alan M. Miroslaw has over 20 years of experience in analytics, finance, and sales roles in the cable television industry. He currently serves as a Senior Manager of Sales Analytics and Marketing at Time Warner Cable/Charter, where he creates reporting tools to measure sales team performance, analyzes customer data to identify sales opportunities, and develops budgets and quotas. Previously he held various finance and analytics roles where he developed models and reports, implemented new systems, resolved data issues, and analyzed financial performance across different regions.
http://profitabletradingtips.com/trading-investing/sound-stock-trading-practices
Sound Stock Trading Practices
There are a number of potentially profitable day trading strategies and strategies for medium and longer term trades. But, in order to reliably turn strategy into profits year in and year out, one needs to engage in a number of sound trading practices. Sound stock trading practices for the day work as well for the longer term. Sound stock trading practices start with not being greedy and taking a little money off the table as profits mount up. They include managing fear and greed and sound stock trading practices always include both a clear head for fundamentals and both eyes on the market.
Take a Little Money off the Table
A confirmed day trader may say that setting your trading stops is all that is necessary to protect profits and guard against loss. However, if you are staying with a trade over night the stock may gap up or down in the morning and not only erase your profits but leave you with substantial losses. If you are not going to be able to control the trade for any period of time take a little money off the table to guarantee your gains. Likewise, you may be in the middle of a profitable trading day when your internet connection goes down. If you have set your stops in time you may be OK. But, you are in no position to trade until your connection is up and running again. Sound stock trading practices include taking a little money off the table when you are winning. After all, you have not earned any money until that money in hand, or at least back in your brokerage account and out of any trades.
Tinashe seeks a permanent job in public health services to provide excellent client service and enact positive change. He has skills in healthcare, computers, electrical work, cooking, and research. For experience, Tinashe was captain of his high school basketball team and led Scripture Union as an evangelist. He also worked on the technical crew of Christ Embassy Church Botswana, assisting with lighting, sound, video recording, and event set-up. Tinashe completed secondary education in Zimbabwe and can provide references from his former schools and church.
- Charter Communications acquired Time Warner Cable in May 2016 in a deal valued at $78.7 billion.
- The acquisition enhanced Charter's competitiveness by making it one of the largest television providers in the US alongside Comcast, AT&T, and Verizon.
- It also provided an opportunity for Time Warner Cable to improve its poor customer satisfaction ratings.
Guia do projeto discente revolução dos bichos módulo comunicação e sociedade ...pablonaba
Este documento descreve as diretrizes para um projeto de adaptação do livro "A Revolução dos Bichos", de George Orwell, para o público juvenil. Os alunos serão divididos em equipes multidisciplinares que deverão elaborar uma história ilustrada de até 20 páginas mantendo a essência da obra original. O projeto será avaliado por várias disciplinas usando critérios como adequação ao público-alvo, coerência textual e qualidade das ilustrações.
The document discusses the process of designing a database in Microsoft Access 2013. It covers the discovery phase where existing and missing data sources are identified. Data is divided into logical tables that are planned and designed. Appropriate data types and field sizes are assigned. Relationships between tables, such as one-to-many, are created. The data is then normalized through several normal forms to eliminate anomalies and inconsistencies. The goal is to organize the data efficiently and establish referential integrity between related tables.
This document provides an overview of ROS and Gazebo for robot simulation. It introduces ROS as a framework for robot software development that encourages code reuse. Key ROS concepts covered include nodes, topics, services, and packages. The document demonstrates creating simple ROS packages and nodes that publish, subscribe and use custom messages. Gazebo is introduced as a 3D physics simulator for robot control and environment simulation. Example demonstrations are provided on using Gazebo and ROS for SLAM with the PR2 robot in Rviz. Resources for further learning about ROS and Gazebo are also listed.
O documento fornece uma introdução às estratégias de marketing digital, discutindo a importância de entender os dados demográficos dos clientes, criar perfis de usuários e desenvolver uma jornada do cliente para direcionar táticas de aquisição, conversão e retenção. Também aborda a importância de testes e métricas para otimizar continuamente as estratégias.
Mobile Payments Index 2016 [Travel Edition]Filipp Paster
The Adyen Mobile Payments Index reveals huge growth opportunities for travel merchants willing to invest in mobile payments. This report draws on Adyen’s data and real-life examples to provide practical advice for merchants looking to grow market share with mobile payments.
Topics: Mobile Commerce
Industry: Travel & Leisure
Comcast has room to lower its WACC by taking on more debt given its low debt-to-equity ratio compared to industry averages. The proposal suggests Comcast issue $15 billion or $25 billion in new 10-year bonds which could lower its WACC from 9.04% to between 8.66-8.44% while increasing its tax shield and still maintaining a debt-to-equity ratio below the industry average. The additional capital would be used to make acquisitions to strengthen its position against emerging streaming competitors and invest in improving its own streaming platform and services.
Provides a clear picture of the current internet and cable industry in the US and where Comcast stands. Also speaks about the financial aspects of Comcast and where it needs to improve.
A10 Networks held a conference call to discuss its second quarter 2016 financial results. The company reported record revenue of $57.1 million, a 20% increase year-over-year. A10 also significantly reduced its net loss per share compared to the previous year. Management highlighted strong growth in the U.S., Japan, and Asia Pacific regions. A10 recently acquired Appcito to expand into the cloud-native application delivery market with a subscription-based service. Management believes the company is well-positioned for continued growth and progress toward profitability in the fourth quarter.
The study found that on average:
- Publishers received 51% of advertiser spend, ranging from 49-67% between publishers
- 15% of advertiser spend was "unattributable" and could not be traced in the supply chain
- There were significant challenges in obtaining the necessary data to map supply chains due to a lack of standardization around data sharing and formatting between parties
WPP's data division Kantar and comScore announced a strategic global partnership to provide cross-media audience and campaign measurement. As part of the deal, WPP will acquire a 15-20% stake in comScore through an equity investment and tender offer. The partnership will combine the companies' data, products, and panels to provide new measurement capabilities outside the US. The alliance is intended to simplify deployment of global measurement and accelerate creation of new services.
This document brings together a set
of latest data points and publicly
available information relevant for
Hybrid Cloud Infrastructure
Technology. We are very excited to
share this content and believe that
readers will benefit from this
periodic publication immensely.
Supplemental Slides to Q3 2016 Earnings CalltribuneIR
The document discusses tronc's Q3 2016 earnings call supplemental slides. It includes the following key points:
- Revenue was down 6.8% in Q3 2016 compared to 2015, while adjusted EBITDA was up 29.2% due to expense mitigation efforts.
- The company has strengthened its balance sheet with increased cash of $146M since 2015 and reduced debt and pension obligations.
- Digital revenue and unique visitors are growing, while the company focuses on content optimization, technology enhancements, and establishing a sales infrastructure.
- Full year 2016 guidance forecasts revenue of $1.61-1.63B and adjusted EBITDA of $172-177M.
This document provides an overview and quantitative analysis of the proposed merger between Comcast and Time Warner Cable. It summarizes the key details of the merger, outlines the companies involved, and calculates the Herfindahl-Hirschman Index (HHI) for pay-TV and broadband markets both before and after the merger. The HHI calculations show a significant increase in market concentration post-merger, indicating potential antitrust issues that could challenge regulatory approval of the deal.
Time Warner Cable is proposing to revolutionize the cable TV industry by offering "a la carte" programming packages that allow customers to choose individual channels rather than bundled packages. This would give customers more control over costs by only paying for desired content. While networks currently rely on bundled revenue, TWC believes it can negotiate new affiliate deals under this model using its large subscriber base. However, TWC also has weaknesses like the worst customer service ratings in the industry currently. It is working to improve its image and address common complaints like vague installation windows.
PwC Entertainment, media and communications deal insightsQ3 2015PwC
Deal volumes continue to stay the course with deal values declining in the absence of cable megadeals. PwC provides a summary of third quarter 2015 deal activity, megadeal activity and an outlook for key sectors.
Comcast plans to merge with Time Warner Cable to become a leading technology and media company. The objectives are to provide faster innovation, better products and communicate the value of the merger to stakeholders. Key stakeholders include subscribers, employees, investors, government regulators and competitors. There are risks such as increased market control drawing regulatory scrutiny, and opportunities like competing against satellite providers. Metrics will measure social media sentiment, media coverage, sales reports and website traffic to assess the merger's success.
This document brings together a set of latest data points and publicly available information relevant for IOT & AR. We are very excited to share this content and believe that readers will benefit immensely from this periodic publication immensely.
Mergers & Acquisitions and Private Label Services For The Electronic Componen...Dennis M Zogbi
A detailed description of the services offered by Paumanok IMR to the worldwide capacitor, resistor, inductor and circuit protection component markets; and their related electronic material supply chains.
Eight insightful letters sent by roumell asset management - Snowball researc...Raghu Raman
the letters sent by Mr. Roumell are rich with insights gathered through field check (“Scuttlebutt research”).
It is apparent from his letters that he attends trade conference, speaks with competitors and customers to gather information about the company’s business. In one of his letters he wrote, “I personally sat in a commercial compressor distribution store to witness first-hand the strength and persistency of the Company’s after-market business”. I’ve compiled the list of “interesting” excerpts from his letters. Also, the complete letters can be found in the “exhibits” section. The purpose of reading this? Readers can use it for “idea generation” and to improve their research skills.
OTT Video Trends and Opportunity (2018)MC[CO] Labs
This upload features a summary of MC[CO] Labs' work in video streaming and our general perspective on OTT video trends from our more recent work, sanitized to protect the confidentiality of our clients.
CIMM Set Top Box (STB) Lexicon / Glossary of terms May 2010Brian Crotty
This document provides definitions for terms related to the analysis of set-top box data for media measurement. It introduces the need for standardizing terms as set-top box data becomes more widely available and used. Key points:
- Set-top box data has the potential to provide more accurate and granular TV viewership data than current measurement methods by tracking linear viewing, DVR playback, VOD, EPG, etc.
- However, various technical, regulatory, and business issues need to be resolved for set-top box data to be a accepted currency. These include standardizing terms and metrics, algorithms for determining when a TV is on, addressing coverage gaps, and managing data volumes.
- The
This document is TiVo's Q4 2016 Video Trends Report which analyzes survey results from over 3,000 consumers regarding their pay-TV, streaming, and viewing habits. Some key findings include: 17% of respondents no longer have pay-TV service, with price being the top reason for cutting cord. Nearly half of respondents could potentially leave their current pay-TV provider in the next 6 months. Respondents want more flexible channel options and a combined streaming interface from providers to improve value and reduce churn. Overall satisfaction remains high but price and customer service generate the most dissatisfaction.
The document discusses tronc's strategy to transform its traditional publishing business into a sustainable model for the future by leveraging technology and digital tools. It will do this by combining content from its Pulitzer Prize-winning media portfolio with new digital tools to increase viewership and drive revenue. Tronc is reorganizing into two segments - troncm for its traditional publishing business and troncx for its digital business. It provides financial highlights showing revenue declines but improved adjusted EBITDA and margins in Q2 2016 compared to 2015. Tronc also discusses its plans to enhance its digital infrastructure, audience analytics, and video capabilities to grow its digital business.
Capitol Broadcasting Company Inc. (www.cbc-raleigh.com)(CBC), is a diversified communications company that owns and/or operates a myriad of divergent holdings across North Carolina including
WRAL-TV, WRAL.com Local Techwire, WRAL-FM, WRAL-HD2, the North Carolina News Network, Wolfpack Sports Marketing, WRAZ-TV in Raleigh, NC, and The Durham Bulls in Durham, NC. CBC’s legacy of hard work, creativity, and a commitment to their audiences, their clients, and their employees has made them a successful broadcasting company and industry leader in the communications field.
1. Time Warner Cable Acquired by
Charter Communication
FE 820 Corporate Financial Management
December 3, 2016
Authored by: Michael Cruz, Seung Ryul Lee, Congyi Liu
Abstract:
"For most of you, who will be moving on to New Charter, the future is extremely bright. Tom
Rutledge and the team he has assembled are seasoned, talented leaders with proven track
records of success" said from TWC’s CEO Rob Marcus, who has been paid tens of millions of
dollars on the way out the door, to his employees in the email. And he is the only one of the
leaving top executives in the deal between Charter Communication and Time Warner Cable.
This analysis includes: case background overview, comparable company multiples valuation,
comparable acquisition multiples valuation, and discounted cash flow valuation. The final
valuation analysis of TWC will be based on these three approaches in the summary with a glance
of the real deal.
2. 1
Time Warner Cable Acquired by Charter Communication
Background Overview:
May 18, 2016 – Charter Communications, Inc. (Nasdaq: CHTR) announced that it has closed its
previously announced transactions whereby legacy Charter, the previous public company
(“legacy Charter”), has combined with Time Warner Cable Inc. (“TWC”). The combination of
Charter and TWC will create a leading broadband services and technology company, serving
over 25 million customers in 41 states. Though TWC would call this deal “combination” or
“merge” and claimed the customers wouldn’t feel any big change right away, but gradually, in
the coming months, Charter will strip away Time Warner Cable and Bright House's names and
introduce its own branding. This means the much-maligned Time Warner Cable (TWC) name --
a piece of cable television history -- is going away. The newly enlarged Charter is now one of the
biggest television providers in the country, standing alongside Comcast (CMCSA), AT&T (T,
Tech30) and Verizon(VZ, Tech30) .1
The most obvious incentive for this giant acquisition is enhancing competitiveness. Though
Charter has somewhat higher marks for customer service than Time Warner Cable, the industry
as a whole is not very popular among customers. By purchasing TWC, Charter is hoping to win
new fans in Time Warner Cable markets like L.A. and New York.With the “Spectrum”, which is
a cool name of the new Charter’s cable TV and broadband services, Charter is convinced that
their network and product investments combined with its consumer friendly operating strategy
will lead to faster customer and financial growth, enhancing career development opportunities
for its employees and driving value for shareholders.
From TWC’s standpoint, this deal could give them a chance to flip over the terrible impression
of customers. According to a new survey from the American Customer Satisfaction Index , the2
cable and internet providers is at an all-time low. And the all-time-lowest of these lowly
corporations is Time Warner Cable, with score of 51 out of 100. TWC would have a better
chance to improve their HD picture quality and call center function by Charter’s technologies
and customer services
1
Stelter, Brian. "Bye, Bye Time Warner Cable. Hello Charter." CNNMoney. CNNMoney, 18 May 2016. Web. 07 Dec. 2016.
http://money.cnn.com/2016/05/18/media/time-warner-cable-charter/
2
American Customer Satisfaction Index, “Benchmarks by Industry: Internet Service Providers””, ASCI , ASCI, Dec, 2016,
http://www.theacsi.org/index.php?option=com_content&view=article&id=147&catid=&Itemid=212&i=Internet+Service+Providers
3. 2
Time Warner Cable Acquired by Charter Communication
Valuations
1. Discounted Cash Flow Analysis
The following assumptions are used for the DCF valuation approach. The details of weighted
average cost of capital and projections of future cash flow and be found in the exhibits.
While it may be easy to project revenue as a singular entity, this is not a reasonable thing to do
for Time Warner as the outlook for each market is different. Projections for revenue are broken
down into 4 revenue streams: residential, business, advertising, and other. We then projected
each revenue stream using prior 3-years growth averages, and lastly, adjusted each projection
based on upcoming market outlooks. Three year growth was chosen because the industry
landscape has changed rapidly prior to that.
Residential revenue has been relatively flat over the last 3 years. The number of subscribers has
stagnated, and the number of “cord cutters” (people that unsubscribe from cable TV) has
increased. However, Time Warner Cable has been successful in upgrading internet service
speeds and adding additional voice subscribers for their retained customers . As such, projected3
revenue growth for their residential customers is projected at 2.15%.
On the other hand, business revenues have grown immensely in the last 3 years with most of the
contribution coming from new high speed data accounts and new voice accounts. They’ve also
been successful in selling voice services to their previous business customers. While we realize
that the projected 18.4% business revenue growth is aggressive, we believe it is sustainable for
another year or two, but taper off before the 5 year projection period and terminal growth takes
over.
We believe advertising revenue will stay constant at 2.5% as it has been historically. Lastly, we
believe other revenue will increase at a high rate for the next 5 years due to a new partnership
with the Los Angeles Lakers. All these factors together lead to a CAGR of 4.45% for the years of
the projection period.
Capital expenditure will scale with growth as additional infrastructure for residences,
commercial buildings and cell towers will need to be installed to support new and existing
3
Time Warner Cable, “Time Warner Cable Reports 2016 First-Quarter Results.” Time Warner Cable Investor Relations, April, 28,
2016,
http://ir.timewarnercable.com/investor-relations/investor-news/financial-release-details/2016/Time-Warner-Cable-Reports-2016-First-
Quarter-Results/default.aspx
4. 3
Time Warner Cable Acquired by Charter Communication
subscribers. Lastly, SG&A is expected to grow at a slightly increased rate beyond revenue due to
increased training and salaries improve customer experience .4
Long term debt maturity dates were pulled directly from their “Trending Schedules,
Reconciliations and Other Financial Information”5
Weighted Average Cost of Capital:
● The debt to equity ratio is calculated by the market value of TWC’s equity, which is
equal to the price per share $209.56 on May 17, 2016 multiple the 284.6M outstanding
shares, and the book value of TWC’s debt, which is 22,492M.
● The risk free rate and market risk premium are as of May 2016.
● The average unlevered beta of the cable TV industry is 0.89 (Total Betas for sector,
Stern, NYU, 2016).
● The pretax cost of debt is quoted by TWC’s average cost of all the debentures⁵.
● Terminal growth rate is 2.6%, which is the projected nominal GDP growth rate to 2022
from the Bureau of Labor Statistics (Overview of projections to 2022).
Based on the assumptions above, the weighted average cost of capital could be gained as the
discount rate. The average unlevered beta of cable TV industry could be re-levered to TWC’s
levered beta by considering the effective tax rate and the debt to equity ratio of TWC. And the
capital asset pricing model is applied for the cost of equity. And after weighting the cost of
equity with the after-tax cost of debt, the weighted average cost of capital turns out to be 6.80%.
Projected Cash Flow:
To calculate free cash flow, we started with Operating Income Before Depreciation and
Amortization (OIBDA). We believe this is a better metric to use for Time Warner Cable because
it does not include the restructuring costs associated with the merger with AOL in 2001. Yearly
expenses incurred are still hovering around $150 million per year. We do not believe that this is
reasonable to include as they are not recurring charges and are non-operating expenses unrelated
to the core business.
4
Time Warner Cable, “Time Warner Cable Annual Report 2014,” Time Warner Cable, May 2015,
http://s1.q4cdn.com/730563363/files/doc_financials/Annual%20Reports/2014/TWC-2014-Annual-Report.pdf
5
Time Warner Cable, “2016 Trending Schedules, Reconciliations and Other Financial Information”, Time Warner Cable, April, 28,
2016, http://s1.q4cdn.com/730563363/files/2016NewFolder/TWC-Trending-Schedules-Q1-2016-FINAL.pdf
5. 4
Time Warner Cable Acquired by Charter Communication
A sensitivity analysis for firm value and share price can be found in Exhibit 2 which details
varying growth assumptions.
2. Comparable Companies
Approach:
In both evaluations using comparables, we used median as representative multiple, from our
consideration that only small number of samples are used for the evaluation while couple of
samples shows outlying figures from range of other samples. Lastly, we averaged three median
multiples representing EV/revenue, EV/EBITDA, and EV/EBIT. For the evaluation we adopted
trailing valuation approach.
Industry Comparable:
Ten of public companies in media industry are screened for comparables. They are qualified to
have similar market cap, ranging from $10 billion to $ 75 billion, as the Time Warner Cable has
market cap of $70 billion. All ratios come from financial data as of Dec 2015, given by
Thompson.
Media industry shows the average of three evaluations as 71,703 million dollars.
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Time Warner Cable Acquired by Charter Communication
Table 1. Reference companies in Media industry
Name EV/ Sales EV/ EBITDA EV/ EBIT
CBS CORPORATION 2.42 11.71 12.8
CHARTER COMMUNICATIONS, INC. 6.88 20.6 68.39
DISH NETWORK CORPORATION 2.54 11.3 15.69
LIBERTY GLOBAL PLC 3.92 9.02 31.8
LIBERTY INTERACTIVE CORPORATION 1.87 10.05 18.19
SFR Group 2.61 8.22 32.1
SKY PLC 1.67 10.23 20.2
TIME WARNER INC. 3.26 11.27 12.28
VIACOM INC. 2.15 9.81 10.67
Vivendi 1.93 9.77 13.45
Mean 2.96 11.36 24.68
Median 2.48 10.14 16.94
Evaluation from industry comparable multiple ($, million)
Revenue EBITDA EBIT
$ 23,697 $ 8,085 $ 4,389
EV/Revenue 2.5x 58,769
EV/EBITDA 10.1x 81,982
EV/EBIT 16.9x 74,360
Avg 71,703
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Time Warner Cable Acquired by Charter Communication
3. Comparable Acquisitions
Four companies are taken on our list, because they are acquired in Q1 2016, recent deals right
before TWC deal at May 2016. We searched media industry but reached out to digital media as
well, in order to avoid too small size of sample, despite of using median. We also rationalized
that both industries has common traits in that publishing and distributing contents via media. In
fact, no big difference from media industry, despite of big gap in deal price. All ratios come from
Solganic’s deal report.
Comparison with prior acquisitions shows the average of three evaluations as 72,742 million
dollars.
Table 2. Reference companies acquired at Q1 2016 ( Media/Digital Media industry)
Direct TV Webzen
inc
Gameloft
Inc
Activision
Blizzard
Median
EV/Revenue 1.9x 2.5x 2.4x 5.9x 2.4x
EV/EBITDA 8.0x 7.7x 80.3x 19.2x 13.6x
EV/EBIT 11.7x NA NA NA 11.7x
Evaluation from acquisition comparable multiple ($, million)
Revenue EBITDA EBIT
23,697 8,085 4,389
EV/Revenue 2.4x 57,228
EV/EBITDA 13.6x 109,760
EV/EBIT 11.7x 51,236
Average 72,742
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Time Warner Cable Acquired by Charter Communication
Summary
For the final value, we weighed the DCF, multiple acquisition approach and multiple common
company approach with 70%, 15% and 15%, respectively. We believe that this is a very large
industry with a very few number of giant companies. While there are companies that compete in
the same digital media distribution, high speed internet, and voice communication industry, their
size (Verizon with revenues of $131.6 billion in 2015 vs. Time Warner Cable’s $23 billion) or
operations (Comcast, with 38% of their $74 billion revenue streams coming from
NBCUniversal) varies too much to make a similar comparison.
For the low estimate, we believe that the DCF forecasted growth has potential to be high. Time
Warner business revenues may not grow as planned so total revenue growth may only grow at
3.66%.
For the high estimate, current net neutrality laws may get passed and Time Warner Cable will be
able to throttle other digital media distribution websites such as Netflix, thus massively driving
“cord cutters” back into subscriptions for Time Warner Cable’s video service.
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Time Warner Cable Acquired by Charter Communication
For the real deal, Charter acquired TWC for $195.71 per share with $100 in cash and $95.71 in
New Charter stock, equivalent to 0.5409 Charter shares. This offer equates to TWC enterprise
value of $78.7 billion, which are $56.7 billion equity valuation plus $22.7 billion net debt, less
$0.7 billion equity investments. For the multiples been used, the enterprise value over TWC’s
estimated EBITDA in 2015 is 8.3. While after being adjusted for synergies and tax benefits, 9.1
was utilized for the final multiples. And the deal was closed in 55.1 billion.
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Time Warner Cable Acquired by Charter Communication
Appendix
Exhibit 1a.
Income Statement with 5 Year Forecast
Exhibit 1b.
Cash Flow with 5 Year Forecast
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Time Warner Cable Acquired by Charter Communication
Exhibit 1c.
Balance Sheet with 5 Year Forecast