Time Warner Cable, Comcast, Yahoo, Google and eBay

CHICAGO--([ BUSINESS WIRE ])--Zacks.com Analyst Blog features: Time Warner Cable Inc. (NYSE: [ TWC ]), Comcast Corp. (Nasdaq: [ CMCSA ]), Yahoo Inc. (Nasdaq: [ YHOO ]), Google (Nasdaq: [ GOOG ]) and eBay (Nasdaq: [ EBAY ]).

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Here are highlights from Tuesdaya�s Analyst Blog:

Time Warner Cable Targets Cox

Time Warner Cable Inc. (NYSE: [ TWC ]), the second largest cable MSO in the U.S. may enter into an agreement with privately-held cable operator Cox Communications, for mutual co-operation of their respective cable systems in California . The cable systems are roughly worth $2 billion and will help both the companies reduce their operating costs such as customer servicing costs. The agreement may also expand to cover more geographic locations.

However, it is also rumored that Time Warner Cable may also acquire the entire cable business of Cox Communications if the Cox Family, the owner of the company decides to quit. Long back in December 2009, Time Warner Cable management asserted that the company may try to acquire rival cable TV operators in order to consolidate its position in the industry as well as to become more competitive for its major rival Comcast Corp. (Nasdaq: [ CMCSA ]).

The company has decided to remain a pure play content distribution platform and has no plans to acquire any content producing company. Investing in high-speed Internet and the commercial business will remain the major growth initiative of Time Warner Cable.

Alibaba, Yahoo Parting Ways?

Alibabaa�s relationship with Yahoo Inc. (Nasdaq: [ YHOO ]), which holds a 39% stake in the Chinese e-commerce company, is turning bitter and the two appear to be drifting apart. The reason: Yahooa�s growing interest in the mainland online advertising market. Alibaba says it might have to reevaluate its relationship with the U.S. company.

Yahoo bought the stake in 2005 by selling off its Yahoo China business to Alibaba and invested $1 billion in the group, which owns Alibaba.com, Chinaa�s largest e-commerce company.

Yahooa�s Hong Kong arm, apparently, is seeking business from advertisers in the mainland, a move that has infuriated the Alibaba camp and could possibly mean the allies competing with each other in the mainland. On the face of it, the move appears to be an attempt on Yahooa�s part to boost revenues in the worlda�s largest Internet market where it has no direct presence. However, there are deep-rooted misgivings that are possibly shaping the developments.

Alibabaa�s handling of Yahooa�s China brand has antagonized Yahoo Chief Executive Carol Bartz even as a group of Yahoo shareholders have demanded that the company reworks its strategy in China. To the U.S. search companya�s chagrin, Yahoo Chinaa�s share of the Chinese Internet market has dropped significantly under Alibabaa�s leadership. Parting ways, therefore, may or may not be a possibility. Whatever be the case, it remains unclear as of now.

In 2009, Alibabaa�s decision to remove classified ads from Yahoo China further vexed Yahoo executives. In January this year, to its biggest shareholdera�s dismay, the Jack Ma-founded Alibaba strongly criticized Yahooa�s defense of Google (Nasdaq: [ GOOG ]) over cyber attacks and censorship issues in China, terming Yahooa�s action reckless.

Meanwhile, even as Yahoo weighs a possible go-it-all-alone option in China, Alibaba has been warming up to eBay (Nasdaq: [ EBAY ]) and the two appear to be exploring the possibilities of a partnership. Last week, eBaya�s CEO John Donahoe made a presence at Alibabaa�s annual industry conference and said the two companies would work together.

Alibaba, which currently has about 2 million users in the U.S., says it is actively pursuing acquisitions as it eyes global expansion. The firm has acquired two e-commerce related companies in the last two months and says beyond China, the United States, Japan and India remain key growth areas.

We currently have a Zacks #3 Rank (short-term Hold recommendation) on Yahoo shares.

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Time Warner Cable, Comcast, Yahoo, Google and eBay