& cplSiteName &

Time Warner Cable Splashes Out $3B for Insight

Jeff Baumgartner
LR Cable News Analysis
Jeff Baumgartner
8/15/2011
50%
50%

Believe it or not, Google (Nasdaq: GOOG)'s proposed acquisition of Motorola Mobility LLC isn't the only news making cable rounds today. Here's a roundup of what else is going on. (See Google Buying Moto Mobility for $12.5B and Google Bringing Order to Android.)

  • Time Warner Cable Inc. (NYSE: TWC) will pay US$3 billion in cash to buy Insight Communications Co. Inc. , a Tier 2 MSO that serves more than 679,000 video subs in Indiana, Kentucky and Ohio. Insight reportedly wanted as much as $4 billion for its systems, but several MSOs, including Cablevision Systems Corp. (NYSE: CVC), Mediacom Communications Corp. and WideOpenWest Holdings LLC (WOW) , balked at the price. TW Cable "was always the obvious buyer of this asset, at least for geographic contiguity reasons," Sanford C. Bernstein & Co. Inc. 's Craig Moffett said in a note issued Monday. (See No Action for Insight's Auction.)

  • Charter Communications Inc. is the latest U.S. cable MSO to deploy Cisco Systems Inc. (Nasdaq: CSCO)'s CRS-3 and ASR 9000 Series Aggregation Services Routers in support of its line of residential and commercial services, including mobile backhaul. Also joining the Cisco stable of routing customers are: Kabel Deutschland GmbH , Germany's largest cable operator; 3 Scandinavia of Denmark; and Consolidated Communications Inc.

  • Initial bids for Hulu LLC are due by the end of this week, and the Web video hub is expected to see them in the neighborhood of $1.5 billion for the site and its associated licenses, reports AllThingsD, which pegs Yahoo Inc. (Nasdaq: YHOO) as the most logical frontrunner. (See Hulu Offers Programming Perks With Sale.)

  • Cable operators are poised to double the number of 6MHz downstream channels they use for Docsis -- from four-to-six to eight-to-12 -- in 2012, Moto Mobility Director of Cable Modem Termination System Product Marketing Jeff Walker predicts on the company blog. He says such an increase would address cable's need to boost overall broadband capacity while supporting faster cable modem tiers enabled by Docsis 3.0 channel bonding.

  • Germany's cartel office has extended its regulatory evaluation of Liberty Global Inc. (Nasdaq: LBTY)'s proposed purchase of Kabel BW GmbH & Co. until Nov. 11, reports German newspaper Boersen-Zeitung. (See Liberty Global Scoops Up KBW for $4.5B.)

    — Jeff Baumgartner, Site Editor, Light Reading Cable



    (1)  | 
    Comment  | 
    Print  | 
  • Newest First  |  Oldest First  |  Threaded View        ADD A COMMENT
    Jeff Baumgartner
    50%
    50%
    Jeff Baumgartner,
    User Rank: Light Beer
    12/5/2012 | 4:56:09 PM
    re: Time Warner Cable Splashes Out $3B for Insight


    SNL Kagan just put out some additional points on the TWC-Insight deal:


    - price equates to about $4,414/basic sub... but Insight was looking for a bit more when it was trying to attract bids up to $4B.


    - It makes a bit more geographic sense for TWC than the MSOs that actually put in bids. SNL Kagan points out that TWC is in Insight's largest sub cluster (Louisville, Ky., with more than 325K subs), and that TWC also has strong presence in or near Insight's larger systems in Lexington, Ky.; Cincinnati and Columbus, Ohio.


    JB

    Featured Video
    From The Founder
    Light Reading founder Steve Saunders talks with VMware's Shekar Ayyar, who explains why cloud architectures are becoming more distributed, what that means for workloads, and why telcos can still be significant cloud services players.
    Flash Poll
    Upcoming Live Events
    May 14-16, 2018, Austin Convention Center
    May 14, 2018, Brazos Hall, Austin, Texas
    September 24-26, 2018, Westin Westminster, Denver
    October 9, 2018, The Westin Times Square, New York
    October 23, 2018, Georgia World Congress Centre, Atlanta, GA
    November 7-8, 2018, London, United Kingdom
    November 8, 2018, The Montcalm by Marble Arch, London
    November 15, 2018, The Westin Times Square, New York
    December 4-6, 2018, Lisbon, Portugal
    All Upcoming Live Events
    Hot Topics
    I'm Back for the Future of Communications
    Phil Harvey, US News Editor, 4/20/2018
    Verizon: Lack of Interoperability, Consistency Slows Automation
    Carol Wilson, Editor-at-large, 4/18/2018
    AT&T Exec Dishes That He's Not So Hot on Rival-Partner Comcast
    Mari Silbey, Senior Editor, Cable/Video, 4/19/2018
    Facebook Hearings Were the TIP of the Data Iceberg
    Dan Jones, Mobile Editor, 4/20/2018
    Pay-for-Play Is a Sticking Point in Congress
    Mari Silbey, Senior Editor, Cable/Video, 4/18/2018
    Live Digital Audio

    A CSP's digital transformation involves so much more than technology. Crucial – and often most challenging – is the cultural transformation that goes along with it. As Sigma's Chief Technology Officer, Catherine Michel has extensive experience with technology as she leads the company's entire product portfolio and strategy. But she's also no stranger to merging technology and culture, having taken a company — Tribold — from inception to acquisition (by Sigma in 2013), and she continues to advise service providers on how to drive their own transformations. This impressive female leader and vocal advocate for other women in the industry will join Women in Comms for a live radio show to discuss all things digital transformation, including the cultural transformation that goes along with it.

    Like Us on Facebook
    Twitter Feed