Charter Communications CEO: Content With Time Warner Cable's Assets, No Plans To Sell - Charter Communications (NASDAQ:CHTR)

Charter Communications, Inc. CHTR announced on Tuesday that it will be acquiring Time Warner Cable Inc TWC in a $56 billion deal. Tom Rutledge, Charter Communications CEO, was on Bloomberg TV recently to weigh in on this.

A Pure-Play Company

Rutledge was asked to describe the public benefits that Charter's acquisition of Time Warner Cable offers that Comcast didn't. He replied, "Well, I think that it offers a company, a pure-play cable company, that's committed to the development of the cable business no matter where it goes, and is efficient and expansive and customer-facing and customer oriented," Rutledge said.

"We think that we can hire a lot of people because of our operating model. We think we can provide excellent customer service, and as a result of that, actually generate greater customer satisfaction, which turns into positive margins because our customers stay with us longer and are happier."

Lower Cost

Rutledge went on, explaining that customer longevity comes lower pricing, "And as a result if that, they actually cost less to serve. So we're quality-based, growth-oriented company that's investing in new technologies. We've developed an open platform, downloadable security system. We've developed open user interfaces that allow to integrate what was traditionally cable TV with over-the-top providers in a seamless presentation."

He continued, "And we are in-sourcing jobs from overseas. And we're investing in plant expansion both in the Wi-Fi area and in commercial areas in a way that is beneficial to not only our employees, our customers, but also the country in the sense that it's going to have a better telecommunications infrastructure as a result of this transaction."

Not Going To Sell Any Assets

On whether one can expect any sale in the future of Time Warner Cable's assets, Rutledge said, "No. We're content with this entire assets, and have no plans to sell any of it."

'Our Business Plan Actually Works'

Rutledge was asked if in hindsight he wishes he should have bought Time Warner Cable for $160 a share in January 2014 when it had made its first takeover bid. He replied, "Well, you remember we didn't have the ability then to do the cash component of that request. And I think that since then, Time Warner has realized that our business plan actually works. And we've presented that plan to Time Warner in this process.