Time Warner Cable to Acquire Midwest Cable Operator15 Aug, 2011 By: Erik Gruenwedel
The $3 billion deal with Insight Communications includes about 750,000 monthly subscribers in Kentucky, Ohio and Indiana
Time Warner Cable Inc. and Insight Communications Co. — the ninth largest cable operator in the country — Aug. 15 said they have entered into a $3 billion merger agreement, which includes 679,000 video subscribers.
The video sub tally is important considering TWC and No. 1 cable operator Comcast collectively reported a decline of 300,000 video subs in their most recent fiscal periods.
TWC, in a statement, said it will be able to realize about $100 million annually in shared cost savings through the acquisition due in large part to Insight having already converted to digital transmissions and DOCSIS 3.0 — an international telecommunications standard that permits the addition of high-speed data transfer to an existing cable TV system.
The deal, which is subject to regulatory approval, is expected to close by the end of the year.