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Time Warner Cable to Acquire Midwest Cable Operator

15 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.

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