CABLE CASH-OUT
TWC chief unloads $43.7M in stock
Time Warner Cable CEO Rob Marcus filled his own holiday stockings with gifts this year.
The executive sold roughly 304,000 TWC shares in 2014 worth about $43.7 million, according to regulatory filings.
In December alone, Marcus exercised options and sold stock worth $13.7 million, according to Securities and Exchange Commission filings.
The proceeds weren’t pure profit as Marcus’ options had a strike price of varying prices.
Marcus was named CEO of the New York Cityheadquartered cable operator in February.
It agreed this year to be acquired by Comcast for $45 billion. The deal is pending regulatory approval.
Marcus is expected to reap an $80 million payout if the company’s merger with Comcast is successful.
After his latest stock sale on Dec. 22, Marcus owned 61,281 shares, SEC filings show.
TWC stock is up 12.8 percent this year, though nine analysts have a hold on the stock; seven have a buy rating.
Meanwhile, many of its cable customers will see rate rises in the New Year by as much as $7.25 in some cases.
The company is levying a $2.75 charge for sports programming and will increase fees for receiving broadcast TV channels by 50 cents, to $2.75.
That’s not all: Modem lease fees are also increasing from $5.98 to $8. Moreover, the company said it will charge an additional $2 for HBO when it’s ordered “a la carte.”
HBO is trying to persuade customers who want broadband only to try its upcoming HBO GO streaming service.
The proposed merger with Comcast, which will unite the No. 1 and No. 2 cable companies in the US, has faced fierce objections because it will give the combined company a stranglehold on highspeed Internet access across the country, critics say.
TWC’s average revenue per user is expected to show a slower pace of growth, according to Macquarie Capital analyst Amy Yong.
It is expected to spend more rolling out Time Warner Cable Maxx, which increases Internet speeds and expands VOD offerings among other things.
TWC’s net new additions will be down 474,000 next year, while highspeed broadband will grow 713,000 during the full year, Yong said.