Mendoza School of Business

Time Warner Cable solidifies hold on Midwest by buying Insight Communications

Published: August 16, 2011 / Author: Joe Flint

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
 Time Warner Cable solidifies hold on Midwest by buying Insight Communications.

The nation’s second-largest cable
operator just got a little bigger.

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.

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
streamlined integration.”

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.



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