The Wall Street Journal recently reported, citing anonymous sources, that Liberty Media Corp will be purchasing 25% stake in Charter Communications. The shares in the cable operator to be purchased would amount to US$2.5 billion.

With the news report, Charter Communications share value rose 7.4% to US$96.74 at close of trading. Liberty declined to comment on the report while Charter was not available for comment.

Liberty Media is holding company controlled by John Malone. The cable pioneer's firm has spun off premium TV cable network Starz last January and increased its shareholdings in satellite radio Sirius XM. It is also in the process of increasing its shareholdings in Live Nation Entertainment, the concert promoter and ticketing firm.

Malone is known as 'the king of cable' established TeleCommunications Inc or TCI. The company became the largest cable service provider in the US before its sale to AT&T. Malone is currently the chairman of Liberty Global, the international cable service provider that recently purchased UK based Virgin Media Inc at a cost of US$15.75 billion.