The death of the Comcast/Time Warner Cable merger has sparked a private equity scramble to invest in US cable systems, The Post has learned.
KKR is engaged in talks with Liberty Media boss John Malone and others to see how they can fit into the picture, sources said.
Others PE powerhouses, including TPG and Providence, are said to be making the rounds, too, according to knowledgeable sources.
KKR, the Henry Kravis-led buyout firm, made a killing on cable acquisitions in the ’80s — starting with its $1 billion purchase of Wometco Enterprises — and is keen to jump back into the fray, sources said.
PE firms have historically done well investing in cable systems.
Apollo Global Management, Oaktree Capital and Crestview Partners sold Malone their collective 26.6 percent in Charter for $2.6 billion in 2013 after buying the firm’s debt.
Jonathan Nelson’s Providence sold its stake in Bresnan Communications to Cablevision in 2010 for $1.3 billion. Three years later, Cablevision flipped it to Charter Communications for $1.6 billion.
“Private equity is seeking partners and talking to Charter, and TWC is the only way they can do it,” said a highly placed source.
“Private equity firms are flush with cash and cable is an easy sell to investors.”
Charter may be the most attractive partner for the PE firms since John Malone is in the catbird seat now that Comcast is unlikely to make another run at consolidation.
Charter CEO Tom Rutledge is in the midst of recalculating a bid for TWC and is set to meet with Rob Marcus, CEO of the New York cable company, next week, according to reports.
With Charter highly leveraged and likely needing to pay $170 to $190 per share to acquire TWC, it could require an additional $30 billion in funding, Wall Street analysts said.
To be sure, Malone isn’t the only option.
PE players may see other points of entry.
“I want to see Cablevision and [TWC] merge,” cable investor Mario Gabelli told The Post, although he conceded he knew of no current talks. “Take New York and spin it off to [TWC] shareholders, that would be intriguing,” he added.
While Cablevision has 3 million subscribers and is based in the New York metro area, TWC has 12 million subs across the US and owns a piece of the LA market.
At the same time, TWC boss Marcus is seen as a seller rather than a buyer given that he didn’t announce a share buyback on Thursday when reporting first-quarter results, sources said.
Marcus also declined to address the M&A elephant in the room on a call with analysts.
Charter is expected to report earnings Friday.
TWC reported on Thursday that it gained 30,000 new video subscribers in its latest quarterly for the first time since 2009 — though analysts believe pricing promotions gave the company a boost.
TWC shares closed Thursday at $155.52, down 1.5 percent.
Over the last 12 months, Charter stock has risen by 43.9 percent and closed Thursday at $187.06.
None of the PE firms responded to calls seeking comment on their interest in cable companies.