Time Warner Cable Says It Will Pay $3B For Insight Communications

Time Warner Cable had been considered a logical buyer: It has systems near Insight’s, the No. 9 operator with 750,000 subscribers in Kentucky, Indiana, and Ohio. But the price was a sticking point. Based on Cablevision’s agreement last year to pay $1.37B for Bresnan Communications, Insight put itself up for auction in March hoping for as much as $4B. The company had taken on a lot of debt when The Carlyle Group took it private in 2005. But Insight has been struggling lately. It lost 4.4% of its cable TV customers in the year that ended in June. Several analysts who follow TWC say they like the terms: Credit Suisse’s Stefan Anninger calls the price, which includes debt, “not cheap, but not terribly expensive either.” And Wells Fargo Securities’ Marci Ryvicker says that “Insight is one way for TWC to improve operations and show growth, which has lagged its peers.” Here’s the release announcing the deal: (more…)

This article was printed from https://deadline.com/2011/08/time-warner-cable-says-it-will-pay-3b-for-insight-communications-157569/