Time Warner Cable Inc., the second largest US cable television operator, agreed to buy cable systems in Kentucky and western Tennessee from NewWave Communications for about $260 million (Dh955 million) in cash.
The deal gives Time Warner Cable 70,000 basic cable subscribers, 42,000 Internet customers and 26,000 phone users, according to a statement from the company.
Chief executive officer Glenn Britt, seeking sales growth beyond the company's strongholds such as the New York area, said he was examining cable acquisitions at a price that "gives us a return".
In April he said a bid for Insight Communications Inc. was "under review". Other cable assets for sale include Charter Communications Inc.'s Los Angeles properties, it has been repoerted people familiar with the matter have said.
"This deal is yet another example of our disciplined approach to capital allocation and [mergers and acquisitions]," said president and chief operating officer Rob Marcus.
This is the first cable acquisition worth more than $100 million for Time Warner Cable since the New York-based company purchased Adelphia Communications Corp. assets in 2006. At the time, Time Warner cable was part of Time Warner Inc.
Time Warner Cable ended the first quarter with 12.2 million residential video subscribers, about 10 million less than Comcast Corp., the US's largest. NewWave Communications was founded by its management and private equity firm Pamlico Capital of North Carolina.
From / Gulf News