Liberty Media to acquire Charter Communications?

19 March 2013 | Kavit Majithia

Liberty Media Corp is reportedly close to securing a deal to acquire a 25% stake in Charter Communications from its private equity investors.

According to a report from Bloomberg released today, the stake is worth approximately €2.48 billion, with largest shareholders, Apollo Global Management and Oaktree Capital Management, looking to make a sale.

Charter operates as the fourth largest cable operator in the US, and completed a $1.63 billion acquisition of Cablevisions’ Optimum West earlier this year.

The company’s financial position has dramatically improved after filing for bankruptcy in March 2009, after being burgeoned with $21 billion in debt.

Bloomberg said none of the involved parties had commented on the possible transaction.

Liberty Global, owned by billionaire John Malone, has 19.6 million pay-TV, internet and phone customers, situated mainly in Europe.

Liberty also owns a stake in Time Warner Cable, and Malone further owns a 4.8% stake in satellite TV company DirecTV.

His cable investments have significantly improved since the sale of his Tele Communications subsidiary to AT&T in 1999.

Charter had confirmed earlier this month that both Apollo and Oaktree would sell 6.2 million and 3.1 million shares respectively in the company.