After Charter rebuffed an overture over the weekend that would essentially have the No. 2 cable company buy SoftBank's No. 4 USA wireless carrier, Sprint, Bloomberg said that Son will try to buy Charter outright and combine it with Sprint.
"The talks with T-Mobile have been encouraging, the talks with other partners have been encouraging", Claure told reporters.
As I reported past year, Charter acquired Time Warner Cable for $78 billion in 2016.
"Sprint reached an important milestone this quarter by returning to profitability for the first time in three years".
Debt-heavy Sprint has been trying to turn its business around, and CEO Marcelo Claure said on a call with analysts Tuesday that it could "sustain itself" alone.
About that rumor that Sprint had set aside talks with T-Mobile during a supposed two month exclusive period to negotiate with Comcast and Charter, Claure said the reports were "not necessarily factual".
Meanwhile, Cowen made note of a Bloomberg report, which said, along with Sprint's plan to buy Charter, Sprint's parent SoftBank had also eyed picking up the remaining 17-percent stake it does not already own in Sprint. That said, the firm thinks the company too will benefit from M&A, either as one of the potential near-term targets of SoftBank or if SoftBank were to merge with Sprint and Charter, then as a potential long-term target for Comcast Corporation (NASDAQ: CMCSA). Net income of 5 cents per share significantly beat average estimates of a net loss of 1 cent per share, according to Thomson Reuters I/B/E/S.
The company noted that the quarterly profit was a result of thousands of job cuts previous year, which cut $4 billion from operating costs.
Under the failed 2014 merger of Comcast (No. 1 United States cable operator) and Time Warner (No. 2), Charter was going to buy Time Warner systems in Ohio and Kentucky, including Greater Cincinnati, Southwestern Ohio and Northern Kentucky. Sprint added 61,000 total customers for the quarter. Sprint now expects operating income of $2.1 billion to $2.5 billion, up from $2 billion to $2.5 billion.
At the time of writing, shares of Sprint were rallying 10.84 percent to $8.85. Our skepticism about Sprint's deal-making has nothing to do with Sprint's intrinsic attractiveness; its subscriber base is inherently appealing to anyone wanting scale, and its spectrum trove of 2.5 GHz spectrum really does have incremental value.