Wanna Buy a Cable Business?

An article in Multichannel News reports that Charter is looking to sell its cable business in Los Angeles. It appears that the normal way these deals go down is to swap subscribers with a competitor, but Time-Warner Cable apparently turned down a deal to trade for its business in parts of Wisconsin where Charter already has more than half a million subscribers.

So now it appears that the Los Angeles subscribers may go on the auction block. If you’ve got a spare $2 billion or so, you may be able to acquire your own cable company in southern California. Was this just a shrewd move by TWC, figuring it would be able to buy the business for less at auction than the value of its Wisconsin subscribers? I guess we’ll find out when the gavel drops to end the bidding. But it’s clear that a lot of cable subscribers in L.A. will be dealing with a different company before long.