The following is an excerpt from an article in the Los Angeles Times where Finance Professor Matt Cain is quoted about the Time Warner Cable's purchase of Insight Communications. To read the entire article visit: Time Warner Cable solidifies hold on Midwest by buying Insight Communications.
The nation's second-largest cable
operator just got a little bigger.
Time Warner Cable Inc., which has some 12 million cable subscribers, including 2 million in Southern California, has added about 700,000 customers with its $3-billion purchase of Insight Communications Co. Inc.
Insight was sought after because its holdings in Kentucky, Indiana and Ohio will fit in with Time Warner Cable's substantial operations in those states. Insight is owned by private equity firms the Carlyle Group, Crestview Partners and MidOcean Partners.
"It is a
very coveted piece of business for us," said Time Warner Cable Chief
Financial Officer Irene Esteves, who added that "it will be a very
Besides strengthening Time Warner Cable's hold on the Midwest, the deal would also give it more leverage with programmers. By increasing its subscriber base, Time Warner Cable can try to cut more favorable deals with cable networks such as MTV and ESPN.
This story also appeared in News Observer, Red Eye Chicago and on KSCW Kansas.