x
Video services

Time Warner Seeking Insight

Time Warner Cable Inc. (NYSE: TWC) confirmed it will bid for Insight Communications Co. Inc. , an operator whose remaining systems offer a strategic fit to those of the U.S.'s second-largest MSO.

"We're participating in the process and we're emphasizing our usual disciplined approach to evaluating strategic opportunities of this sort," said TWC chief financial officer John Martin Wednesday morning during the operator's second-quarter earnings call with reporters and analysts. He declined to provide any further comment. (See TWC Ups Q2 Revenues.)

In May, Insight hired Morgan Stanley and Waller Capital Corp. to advise it of its options, including a possible sale or an expansion through its own set of acquisitions. (See Is Insight on the Block? )

But the latter scenario is highly unlikely considering the direction in which Insight is already moving. Earlier this year, Comcast Corp. (Nasdaq: CMCSA, CMCSK) signed a deal to take control of Insight systems passing 1.2 million homes in the Midwest that are clustered near Comcast systems. Comcast is also considered a possible bidder for the balance of Insight. (See Comcast, Insight Divvy Up Midwest.)

Time Warner Cable's interest in the remains of Insight comes as little surprise. Sanford C. Bernstein & Co. Inc. analyst Craig Moffett suggested earlier this year that the Comcast-Insight agreement could spur Time Warner to pursue the rest of Insight, as Insight's remaining systems offer a "near perfect fit" with TWC's.

Once the deal with Comcast is closed, Insight will still own systems serving parts of Kentucky (Louisville, Lexington, Bowling Green, and Covington); as well as Evansville, Ind.; and Columbus, Ohio.

An Insight spokeswoman declined to comment on the prospects of a sale or speculation on who has placed a bid on the New York-based cable operator.

— Jeff Baumgartner, Site Editor, Cable Digital News

Be the first to post a comment regarding this story.
HOME
Sign In
SEARCH
CLOSE
MORE
CLOSE