Paulson Pleased With Comcast-Time Warner Cable Deal

Feb 14 2014 | 11:13am ET

Paulson & Co. is a big fan of Comcast Corp.'s proposed $45 billion takeover of Time Warner Cable—and has at least 200 million good reasons for it.

The New York-based hedge fund said yesterday that the merger is "the best possible outcome for TWC shareholders." Paulson itself is a big one, among TWC's top 10 with some six million shares.

The hedge fund bought two-thirds of that stake during the third quarter, when TWC shares were going for about $112 each. Comcast has pledged to pay $158.50 per share in the all-stock deal, meaning that Paulson would earn almost $200 million on those four million shares alone.

In an interview yesterday with The Wall Street Journal, firm founder John Paulson said Comcast was "always the most logical acquirer," and that he didn't see "any reason why this deal would be blocked."

Paulson said the mega-deal presages "further consolidation" in the cable television industry, noting that Charter Communications—an early suitor for TWC—could buy the roughly three million subscribers Comcast will have to jettison to meet regulatory muster. And he suggested that he wouldn't simply take Comcast's stock and run.

"We stayed in MetroPCS after the T-Mobile deal," he noted. "We still hold our stake. I would think it would be very attractive to hold Comcast post-merger as well. At the end of the day, the earnings-per-share and cash-flow-per-share should grow more for Comcast with Time Warner Cable than it would as just Comcast alone."


In Depth

Exotic Assets: Investing In Rare Violins

Jan 17 2017 | 4:43pm ET

By definition, alternative investments include exotic assets far beyond your typical...

Lifestyle

'Tis the Season: Wall Street Holiday Parties Back In Fashion

Dec 22 2016 | 9:23pm ET

Spending on Wall Street holiday parties has largely returned to pre-2008 levels...

Guest Contributor

The Trump Administration: What It Could Mean for Carried Interest

Jan 19 2017 | 5:25pm ET

The arrival of the Trump administration brings the potential for a repeal of the...

 

From the current issue of

As initial anxiety over Donald Trump’s victory gave way to market euphoria in the days following the election, there was a casualty. Gold prices.