Quick Hits

Charter Share Repurchases Likely Flat At $1BN In 2Q19

Advance/Newhouse (A/N) filed its most recent Charter ownership disclosure last week, and with it we estimate that Charter repurchased $1BN of stock in 2Q19.  This would be commensurate with the amount of repurchases in Q1; however, it is lower than our prior estimate of $1.5BN.  Mgmt. is targeting leverage of 4.5x EBITDA; we believe they remain committed to this target.  We estimate that Charter should repurchase $7BN of stock in 2019 to land at 4.5x EBITDA; the company needs to accelerate repurchases to meet this target.  The company could have repurchased more stock than what is implied by the A/N filing.  If the $1BN in repurchases proves accurate, we see three possible reasons for lower-than-expected repurchases this quarter:  Continue reading “Charter Share Repurchases Likely Flat At $1BN In 2Q19”

T-Mobile / Sprint / DISH: What To Look Out For In A Remedy Package

According to press reports (LINK), the parties are nearing a deal in which DISH would acquire $6BN in assets from the merging companies (mostly spectrum & prepaid subs).  Presumably, the asset acquisition helps establish DISH as a credible enough fourth carrier such that the DOJ can approve the deal.  The state AG’s will then decide whether the divestitures and other conditions are sufficient to cure the competitive harms that they see arising from the deal.  If the concessions are along the lines we discuss below, we think the concessions could weaken the state’s case enough such that they drop their suit or lose in court, but it will depend on the details of the concessions. Continue reading “T-Mobile / Sprint / DISH: What To Look Out For In A Remedy Package”