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.
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