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Spectrum’s $95 Billion Debt Disaster...What Happened?
Charter Communications—better known as Spectrum or Time Warner Cable—serves over 30 million Americans with internet, cable and mobile, but it’s sitting on a $95 billion debt time bomb. In the 1990s and 2000s, Charter aggressively acquired smaller cable operators, piling on more than $20 billion in debt by 2009. When video and ad revenues collapsed, missing a $73 million interest payment forced Chapter 11 bankruptcy. After emerging leaner, Charter recruited Tom Rutledge from Time Warner Cable and took on a secret power player: billionaire John C. Malone’s Liberty Media, which quietly controlled nearly half its voting shares. In 2015, against all odds, Charter outmaneuvered Comcast to merge with Time Warner Cable for $78.7 billion—and then spent another $73 billion on share buybacks, driving debt to unprecedented levels. Today, with a debttoequity ratio of 6.1 and interest expenses topping $1.3 billion per year, Charter’s only path forward hinges on survival, not expansion. This is the untold story of how one man in the shadows orchestrated one of telecom’s strangest—and most perilous—acquisitions.
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By Logically AnsweredSpectrum’s $95 Billion Debt Disaster...What Happened?
Charter Communications—better known as Spectrum or Time Warner Cable—serves over 30 million Americans with internet, cable and mobile, but it’s sitting on a $95 billion debt time bomb. In the 1990s and 2000s, Charter aggressively acquired smaller cable operators, piling on more than $20 billion in debt by 2009. When video and ad revenues collapsed, missing a $73 million interest payment forced Chapter 11 bankruptcy. After emerging leaner, Charter recruited Tom Rutledge from Time Warner Cable and took on a secret power player: billionaire John C. Malone’s Liberty Media, which quietly controlled nearly half its voting shares. In 2015, against all odds, Charter outmaneuvered Comcast to merge with Time Warner Cable for $78.7 billion—and then spent another $73 billion on share buybacks, driving debt to unprecedented levels. Today, with a debttoequity ratio of 6.1 and interest expenses topping $1.3 billion per year, Charter’s only path forward hinges on survival, not expansion. This is the untold story of how one man in the shadows orchestrated one of telecom’s strangest—and most perilous—acquisitions.
Earn Cash Back On Stocks: Up To $5,000 Per Year
Free Weekly Newsletter With Insiders:
Socials:
Discord Community:
Timestamps:
Resources:
Disclaimer:
Disclosure: This video is sponsored by Proton VPN. Some of the links in this description may be affiliate links, which means I may earn a small commission at no additional cost to you.
-----------------------------------
Learn more about your ad choices. Visit megaphone.fm/adchoices