Patrick Drahi's Altice and John Malone's Charter Communications are fighting to take over Time Warner Cable

 
Billy Ehrenberg
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Time Warner Cable could be the subject of a high-stakes battle (Source: Getty)

Time Warner Cable (TWC), one of the biggest US cable companies, could become the subject of a takeover clash.

John Malone, a US cable tycoon who owns Charter Communications, and France’s Altice are vying to buy TWC for $48bn (£31bn), sources told the Financial Times.

Discussions are said to be ongoing through the weekend, with Charter leading the negotiations. Another source said Charter would be willing to pay a large premium for TWC, with the US cable industry in a state of flux.

Altice is said to be serious too – it has apparently secured funding channels through a range of banks, including Barclays and JPMorgan.

All sources are quoted as saying no outcome was guaranteed.

As more broadband content providers such as Netflix and Hulu enter the scene, the environment is becoming ever more difficult for cable companies. One way to combat the stiffening competition is consolidation, with bigger cable companies seen as a way to ensure expensive, quality content.

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