Time Warner Cable close to Insight Communications deal
The second largest cable operator in the US, Time Warner Cable, is close to completing a deal to acquire Insight Communications for approximately $3 billion.
The Financial Times reports a definitive announcement regarding the deal could be reached today, and it will be Time Warner Cable’s first major acquisition since separating from the Time Warner Group in 2009. Insight Communications is a privately-owned company and has been on sale for several months. The US-based firm offers television, internet and phone services to over 750,000 customers in Ohio, Indiana and Kentucky.
There has been much speculation in the media regarding the prospective sale of Insight Communications, and it is unclear why a smaller cable operator did not acquire the company earlier in the year in an auction issued by its holding company, private equity firm Carlyle Group.
In accordance with market trends, cable TV operators are increasingly looking to acquire telecommunications firms in order to add high-speed internet to its subscription packages. The premise of triple and quadruple play services, delivered by cable companies also allows cable operators to negotiate better deals with its TV networks as it adds value for the customer.
Capacity will be reporting throughout the day should there be any announcements regarding Time Warner Cable’s proposed bid to acquire Insight Communications.