Time Warner downplays cable firms buying Sprint

NEW YORK (Reuters) - Time Warner Inc. (TWX.N: Quote, Profile, Research, Stock Buzz) Chief Executive Richard Parsons on Tuesday played down talk that some of the top U.S. cable companies would buy Sprint Nextel Corp. (S.N: Quote, Profile, Research, Stock Buzz), the No. 3 U.S. wireless service provider.

Time Warner's cable unit, along with Comcast Corp. (CMCSA.O: Quote, Profile, Research, Stock Buzz), Cox Communications and Advance/ Newhouse Communications, have formed a joint venture with Sprint to help them compete better with telecoms rivals.

Some analysts have said the cable companies, which already clubbed together to buy wireless airwaves in an auction earlier this year, may end up buying Sprint.

But Parsons, speaking at the Reuters Media Summit in New York, said he was evaluating other options, such as strengthening the venture or using the airwaves to build a wireless network.

"I suppose a third option down the road would be to acquire one of the wireless players but that is not in my view something that is imminent or even optimal," Parsons said.

The executive also said he does not believe it makes sense for any one cable company to make a bid for Sprint.

"Given the structure of the cable industry currently, where everybody's got their territory but nobody has a national footprint, it's inefficient to have this whole national wireless footprint and not have a wireline footprint that matches up to it," he said.