Time Warner Cable Inc (NYSE:TWC) chairman and CEO Glenn Britt has announced to step down by the end of this year. The cable operator has announced Robert Markus as the successor of Britt, reports Liana B. Baker of Reuters. Glenn Britt has been heading the company since 2001. He is known for positioning broadband internet as the primary product of cable operators.
The appointment of Robert Markus was widely expected. He will become the chairman and CEO of the company effective January 1, 2014. Britt has indicated earlier that he had identified Markus has his successor about 4-5 years ago. Robert Markus, 48, was promoted to the president and chief operating officer in 2010.
Time Warner Cable faces consolidation
The change in CEO comes at a time when Liberty Media Corp (NASDAQ:LMCA) (NASDAQ:LMCB) chief John Malone made an offer to acquire Time Warner Cable Inc (NYSE:TWC) through Charter Communications Inc. Liberty Media Corp. (NASDAQ:LMCA) owns a 27% stake in Charter Communications Inc. (NASDAQ:CHTR). Time Warner Cable rejected the offer because it didn’t see the bid as beneficial to the company. However, analysts believe that the change in CEO wouldn’t affect John Malone’s interest in the cable TV operator.
Robert Markus said Time Warner Cable Inc (NYSE:TWC) won’t change its philosophy on mergers and acquisitions. In 2011, the company acquired Insight Communications in a $3 billion deal. Markus said he sees a better value creation opportunity in repurchasing Time Warner Cable’s own shares.
Challenge before Robert Markus
Robert Markus’ biggest challenge is to sail through consolidation talks. The stock has already risen 21% this year so far in expectation of a deal with Charter. Time Warner Cable Inc (NYSE:TWC) is also facing stiff competition from online streaming service providers like Netflix, Inc. (NASDAQ:NFLX). Markus said in a statement that there will not be any fundamental changes in the near term after he takes the charge. Markus emphasized that he will nurture a performance-oriented culture at the firm.
Time Warner Cable Inc (NYSE:TWC) shares fell 0.61% to $116.51 at 2:24 PM EDT.