Charter (CHTR) Peers on Watch Following Liberty (LMCA) Deal (CVC) (TWC) (SIRI)

March 19, 2013 9:07 AM EDT
Today's deal between Charter Communications (Nasdaq: CHTR) and Liberty Media (Nasdaq: LMCA) could have a mixed impact in the media segment.

According to a release earlier, Liberty will pay about $2.617 billion for a 27.3 percent beneficial ownership in Charter, which includes 26.9 million common shares and 1.1 million warrants. Charter is currently the fourth-largest cable provider in the U.S.

Potential investment by Liberty will be capped at 39.99 percent and it cannot increase its stake to over 35 percent until January 2016.

The partnership will pressure names like Time Warner (NYSE: TWC) and Cablevision (NYSE: CVC), as mentioned Monday. It's not clear whether or not the relationship will add benefit to Sirius XM (Nasdaq: SIRI), though Sirius shares are trading higher early Tuesday.

Following an 8.8 percent close higher Monday, Charter is slightly lower early. Liberty Media is flat.

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