March 18, 2013
Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.
What: Shares of Charter Communications (NASDAQ: CHTR ) jumped as much as 11% today, after reports broke that Liberty Media (NASDAQ: LMCA ) is buying a 25% stake in the cable provider.
So what: Shares shot up just after 12:30 p.m. ET today as sources began reporting that the two parties were close to a deal. Liberty will pay nearly $2.5 billion for the 25% piece of Charter, and shares of the country's eighth-biggest pay-TV provider quickly jumped to a valuation near $10 billion, in line with Liberty's offer. Liberty Media, which finished the day up 0.3%, also gained full control of SiriusXM Radio recently and has been increasing its stake in Live Nation Entertainment.
Now what: Shares of Charter are now up 50%, and John Malone bet seems to indicate that he sees it as a value play. Not only does his expected purchase mean a higher share price for Charter, but his direction could also help lead Charter back to profitability.
Find out what's next for Charter Communications. Add the company to your Watchlist by clicking right here.