Do Hedge Funds Love Charter Communications, Inc. (CHTR)?

Charter Communications is currently in the process of acquiring Time Warner Cable in a deal valued at $56 billion. The transaction was announced in May and has been approved by shareholders of both companies. However, since the merger is going to create the second-largest cable and broadband player in the industry, many competitors, as well as lawmakers have expressed concerns regarding the deal.

Recently, Senate Democratic leader Harry Reid has expressed his concerns about Charter’s acquisition of Time Warner Cable and in a letter sent to Federal Communications Commission Chairman Tom Wheeler and Attorney General Loretta Lynch, he said that the merger might create barriers for competition in the broadband space. It should be noted that if the deal is completed, the two main players on the market will be Comcast and Charter-Time Warner Cable, which poses the risk of turning the market into a duopoly. Among other lawmakers that expressed their concerns regarding the deal between Charter and Time Warner Cable are presidential candidate Bernie Sander and senators Elizabeth Warren and Mike Lee.

Meanwhile, Charter’s stock has inched down by slightly more than 2% over the last 52 weeks as investors are looking forward to the merger. On the following page, we’re going to go over the latest action surrounding Charter Communications, Inc. (NASDAQ:CHTR).