Comcast has been eyeing acquisition of cable rival Charter why it hasnt pulled the trigger yet

Comcast has eyed buying rival cable giant Charter Communications for longer than most people realize – but it hasn’t pulled the trigger, and the operative word is “debt,” On The Money has learned.Specifically, Comcast CEO Brian Roberts – who unleashed an epic flurry of deal speculation when he revealed last week he planned to spin off NBCUniversal – isn’t about to digest nearly another $100 billion in debt while he’s in the middle of a massive corporate restructuring, sources said.Those sentiments were directed to me by people with direct knowledge of the matter after we ran a story last week about bankers touting a Comcast-Charter tie-up, the idea being that the former is now effectively a pure-play cable and broadband distributor looking to grow.“I just want to warn you about pushing the notion of that deal,” is what I was told by someone who knows Comcast’s inner workings.“Just look at all of the Charter debt.”A Comcast rep declined to comment.

The Wall Street rumor mill is heating up with all sorts of prospective Comcast dealmaking, of course, now that Roberts will have currency to expand a distribution empire that isn’t bogged down by entertainment content that is seen as a drag on earnings. One talked-about possibility would be for Netflix to swoop in and write a big check to buy NBCU after it lost the Warner Bros.Discovery bidding war to Paramount Skydance.Another, equally touted scenario is for Comcast to buy out Charter.Here’s the theory: Cable distribution, for all its issues (cord cutting and wireless competition at the top of the list) still throws off a lot of cash.

Comcast needs to expand to compete, and combining with a competitor that operates in different markets like Charter seems like a strategic fit.Shares of Charter popped 10% on the speculation.That’s before you do the math on Charter’s debt, which Roberts and his bankers have done.

It’s enormous – around $100 billion on top of the roughly $90 billion R...