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Time Warner Cable Splashes Out $3B for Insight

August 15, 2011 | Jeff Baumgartner |

Believe it or not, Google's proposed acquisition of Motorola Mobility Inc. 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. 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., 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.'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. 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.'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



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