Thomas Rutledge
This report was originally published on December 5.
By Phillip Dampier
Charter Communications is using the benefits of the
Republican-promoted tax cut to buy back its own stock, because the only
other option under consideration was using the money to buy up other
cable operators.
“From a [mergers and acquisitions] perspective, I think cable is a
great business. If there were assets for sale that we could do more of,
we would do that,” said Charter Communications CEO Thomas Rutledge at
this week’s UBS Global Media & Communications Conference. “We’ve
been buying a lot of our own stock back. Why? Because we think the cable
business is a great business and we haven’t been able to buy other
cable assets.”
Charter is not using the company’s lower tax rate
to benefit Spectrum customers with lower bills or more extravagant
upgrades. Instead, it is accelerating efforts to please shareholders and
executives with efforts to boost its share price — something key to top
executives’ performance bonuses.
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Source: Stop the Cap
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