Time Warner Cable and Cox Communications are in discussions about swapping cable systems in California valued at $2 billion as well as negotiating a broader alliance, reports Reuters.
The discussions are aimed at helping the companies compete more effectively against Comcast, which is buying NBC Universal, the story says. Time Warner Cable and Cox declined to comment on the talks, the article adds. Both companies have cable systems that are adjacent to each other in large cites such as Los Angeles and San Diego, the article says.
If the two were eventually to combine, they’d have under 20 million subscribers, still less than Comcast’s 23.2 million customers, the story says.