Markets

Time Warner Cable to Buy Insight Communications for $3 Billion (TWC)

Cable TV and Internet provider Time Warner Cable Inc. ( TWC ) on Monday said it has entered into a definitive agreement to buy fellow cable operator Insight Communications for $3 billion in cash.

TWC outbid several other potential suitors for insight, including rival Cablevision Systems ( CVC ).

Time Warner Cable CEO Glenn Britt commented, "We believe in our business and its long-term prospects and have long thought that Insight's well-run, technologically advanced systems would fit well with our Midwest operations."

Time Warner shares were mostly flat in premarket trading Monday.

The Bottom Line

Shares of Time Warner Cable ( TWC ) have a 2.93% dividend yield, based on Friday's closing stock price of $65.53. The stock has technical support in the $61-62 price area. If the shares can firm up, we see overhead resistance around the $70-$72 price levels.

Time Warner Cable Inc. ( TWC ) is not recommended at this time, holding a Dividend.com DARS™ Rating of 3.4 out of 5 stars.

Be sure to visit our complete recommended list of the Best Dividend Stocks , as well as a detailed explanation of our ratings system here .

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Created by Dividend.com


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Other Topics

Stocks

Latest Markets Videos