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BREAKING- Time Warner Issues Statement about Ongoing Negotiations with CBS (TWC, CBS)

In a statement on its website, Time Warner Cable Conversations, Time Warner Cable (NYSE: TWC) said the following Tuesday morning:

“Update July 30, 2013: We have agreed to an extension with CBS until Friday, August 2 at 5pm ET while we continue negotiations.”

In another entry on the site that doesn’t appear to be posted Tuesday, it says,

CBS (NYSE: CBS) is asking us to pay 600% more to buy their programming directly from them in New York, Los Angeles and Dallas than we pay to buy their programming from other companies in dozens of other cities across the country.

That’s wrong.  It’s unreasonable to expect our customers to pay a 600 percent premium in a handful of cities, and so we are negotiating very hard for a reasonable price.

This is not a standard debate over price increases.  This is different. CBS’s demand for a 600 percent premium is unprecedented.

In a recent tweet, one person summed up the program well:

[stock-tools exchange="NYSE" symbol="TWC" image_height="230" image_width="350"]

Disclosure: At the time of this writing, the author had no position in the company mentioned.

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