Charter Communications, backed by billionaire John Malone, is working with Goldman Sachs Group to pursue a bid for Time Warner Cable, according to people close to the situation.

The move signals that Malone and Charter chief Tom Rutledge are serious about revisiting a potential merger after being rebuffed by Time Warner Cable earlier this year, said a source.

Charter rose 3 percent yesterday, to $128.31, yesterday. Time Warner, up 20 percent in 2013, rose 2.3 percent, to $116.47.