Time Warner Cable Ipo Essay

1354 Words Nov 29th, 2014 6 Pages
When television first became popular, mainstream media companies were unsure of how to profit off the new sensation. Television sets back then used antennas that received wireless airwaves to produce a picture. Consumers could theoretically watch any channel within a broadcast area for free. While this was taking place Glenn Beck, Former CEO of time INC, was working behind the scenes to implement a service that would allow for viewers to plug into a regulated receiver to have reliable access to a broad range of channels and networks. In 1978, TWC acquired 100 percent of the American Television Communications network and Glenn Beck’s idea of regulated television was put into motion. Time INC merged with Warner Cable Company in 1989, and …show more content…
In fact, the company needs about $5.5 billion to keep operations running at peak efficiency. For this reason, I believe equity is the most important input to their business operation. As TWC is a publicly traded company, equity is mainly derived from stockholders who are compensated quarterly. (2) Though they do sell quite a bit of stock, financing activities funds a large portion of operations expense. In the past they used long- term loans for funds, sometimes reaching amounts as high as $13 billion. (1) More recently, the company has taken steps towards independence by depleting this expense by as much as $2 billion each year without incurring any more debt from loans. (1) Moving away from financing, the company clears an impressive amount of cash to the tune of about $5 billion a year. (1) With that said, cash can only go so far without the proper leadership directing the funds appropriately. The inputs that closely follow capital in importance are the supplies, materials, and resources needed for the general business processes involved with the communications industry. These items would include cables, digital cable boxes, wireless routers, digital phone materials and Internet security software. Along with the physical supplies, a communication company also has to factor in service vehicles and the expenses that come along with them. (4) The final input I found substantially relevant was labor and everything else involved with human resources. As mentioned

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