The CHTR / TWC merger is mostly about rolling up and turning around poorly-managed cable assets. The bet is on Tom Rutledge (Charter’s current CEO) being able to turnaround poorly-run cable assets. Ideally, he will get the productivity of the assets similar to or higher than Cablevision, his former employer. For a deeper dive, see my post on “Malone’s cable strategy“.
I think that it is likely that Charter is much better off with the merger than without it. Its shares trade at a premium valuation (relative to TWC), presumably because the market recognizes that Tom Rutledge can squeeze a lot of extra productivity out of cable assets. Charter shareholders benefit if its shares are used to acquire companies with relatively less expensive shares.
As well, the turnaround game works best when the company consists mainly of poorly-run assets. Post-turnaround, there is little room for value creation. Constant takeovers are good for Charter because it dilutes Charter’s ownership of mature post-turnaround assets.