Comcast is planning to get rid of its 21 percent stake in Time Warner Cable as part of an initial public offering, reports Bloomberg News. Comcast got the stake as part of a partnership when its partnership with Time Warner about certain assets including HBO ended. According to the report, Comcast wants to reduce its debt. After acquiring AT&T’s cable business, Comcast debt tripled to more than $30 billion. Timing of the IPO however is not known at this time, though TW plans to file documents with SEC soon.
bq. “The reality, I do think, is Time Warner will become public once the SEC is done,” said Richard Greenfield, an analyst at Fulcrum Global Partners, who has a “buy” rating on shares of both Time Warner and Comcast. “That would be a positive for Comcast by further deleveraging their balance sheet,” he said. “It’s also positive for Time Warner because it will create a higher valuation for cable and give them a public currency to pursue acquisitions.”