Analyst: Comcast Doesn’t Need Time Warner Cable

By Mark Joyella 

As the mega-merger between Comcast and Time Warner Cable continues to take on water, Brian Nichols suggests the acquisition of Time Warner doesn’t matter much for Comcast investors.

Writing at Seeking Alpha, Nichols argues Comcast has plenty of power all by itself–boosted in part by advertising revenue in broadcast and cable:

Comcast’s film business is performing well with blockbusters like the Fast & Furious franchise. Comcast’s theme parks are doing well too, revenue up 30% year-over-year during its last quarter. Also, advertising revenue is constantly on the rise, which is one reason why Time Warner was so attractive in the first place. During the first quarter, TV ad spending rose 7% and 4% for broadcast and cable, respectively, year-over-year. While it would be great to acquire a company like Time Warner Cable who also gains from that advertising revenue growth, it is not necessary for Comcast’s stock to trade higher long-term.