UPDATE 1-EXCLUSIVE-Charter weighs bid for Time Warner Cable by year-end -sources
-sources@ (Adds earnings results, deal details)
NEW YORK, Nov 1 (Reuters) - Charter Communications Inc is weighing a bid for Time Warner Cable Inc before the end of the year, and working on details of a deal structure that would appeal to Time Warner Cable's shareholders, people familiar with the matter said.
John Malone's Liberty Media Corp, which owns about a quarter of Charter, approached Time Warner Cable earlier this year about merging Charter and Time Warner Cable. But sources said Time Warner Cable's management was cool to the idea of a tie-up.
Time Warner Cable has a market value of more than $34 billion, compared with Charter's market value of about $13 billion.
Charter and Time Warner Cable declined to comment, while Liberty Media did not immediately respond to requests for comment. The sources asked not to be identified because the matter is confidential.
Charter is hoping that Time Warner Cable's weak operating performance in the third quarter, in which it saw a fall in both TV and internet subscribers, would make the company more open to a bid, the sources said.
Charter is working with its advisers on a deal structure which could add pressure on Time Warner Cable's management to come to the table, the sources said.
Time Warner Cable ranks second to Comcast Corp in the U.S. cable market with about 12 million customers, while Charter is the fourth-largest cable provider with about 4 million video customers.
(Reporting by Soyoung Kim, Nadia Damouni, Liana Baker; additional reporting by Ron Grover and Nicola Leske; Editing by Bob Burgdorfer and Chris Reese)