Who: Time Warner Cable, Insight, Carlyle Group
What: TWC buys medium market cable provider
When: August 15, 2011
Where: New York
Beat out Cablevision’s bid in auction
Time Warner Cable (TWC), the nation’s second largest cable provider and spin-off from the Time Warner Group,
has successfully bid to purchase Insight Communications for $3 Billion. It beat out New York-based rival
Cablevision’s bid in an auction.
Insight Communications is a cable service provider that operates in Indiana, Kentucky, and Ohio. The
video, voice, and data company has a customer base of approximately 750,000 subscribers and was, prior to the sale,
a private equity venture of the Carlyle Group, Crestview Partners, and MidOcean Partners. By contrast, TWC has 12 million customers.
Speculation had prompted some to consider Insight’s sale price worth as much as $4 Billion. Nevertheless, at $3 Billion
the sale marks the largest cable provider acquisition since Comcast and Time Warner jointly purchased bankrupt Adelphia Communications for $17.6 Billion in 2006.
The deal – $3 Billion for an additional 750,000 customers – also highlights the capacity for longterm profit that a
multi-platform service providers carry; even in a depressed economic climate.
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