Charter Communications Chief Executive Resigns

Charter Communications Inc. Chief Executive Jerald Kent resigned Monday amid rising tensions with the company’s controlling shareholder, Paul Allen, the computer billionaire who is chairman of the nation’s fourth-largest cable company.

“It’s a philosophical parting of the ways between Paul and myself,” said Kent, who as founder of the company built Charter to 6.4 million subscribers.

Kent would not comment further about his conflicts with Allen, who has invested heavily in the media business over the last decade as part of his “wired world” vision in which consumers can access information and entertainment anywhere. His investments include stakes in DreamWorks, USA Networks Inc., Oxygen Media, High Speed Access, Tech TV and RCN Corp.

Kent said rumors that he resigned in opposition to a plan to combine Charter with troubled cable provider, RCN, are erroneous. “There has never been a discussion about that,” he said.

Kent was praised by industry rivals as well as Charter shareholders Monday for his astute financial performance.

“He’s done a remarkable job integrating 13 acquisitions and taking this company from 1 million subscribers to 7 million,” said Marc Nathanson, a board member who became Charter’s second-largest shareholder after selling his cable company to Allen.

Despite Allen’s acquisition of some of the worst systems in the cable business, Charter has among the highest profit margins in the industry.

Wall Street reacted sourly to the news Monday, driving down Charter shares by $3.19, to close at $12.81 on Nasdaq, in trading of 42 million shares, almost 13 times the three-month daily average.