On Tuesday I told you that something big was afoot at Charter Communications. Now we know: CEO Tom Rutledge has agreed to buy a collection of Cablevision’s cable systems in the Rocky Mountain states that he used to manage when he was COO of the Long Island-based company. He left at the end of 2011. Cablevision paid $1.4B for the systems, formerly known as Bresnan Communications, in 2010. But it said in November that it was considering selling the operation. The systems in Colorado, Montana, Wyoming and Utah have 304,000 video subscribers. Rutledge calls them “some of the fastest growing cable assets in the United States.” Cablevision shares were up 5.6% today as word of a possible deal began to spread. Charter was down just 0.5%.
Here’s the release:
Stamford, Connecticut – February 7, 2013 – Charter Communications, Inc. (NASDAQ: CHTR) (“Charter”) and Cablevision Systems Corporation (NYSE: CVC) announced today that they have entered into a definitive agreement under which Charter Communications Operating, LLC will acquire Cablevision’s Bresnan Broadband Holdings, LLC (“Optimum West”) for $1.625 billion in cash. Optimum West manages cable operating systems in Colorado, Montana, Wyoming and Utah that pass more than 660,000 homes and serve 304,000 video subscribers and 366,000 customer relationships. (more…)