Time Warner Cable lands Insight for $3B

Picking up 750,000 cable subscribers in Indiana, Kentucky and Ohio, Time Warner Cable (NYSE: TWC) agreed Monday to buy Insight Communications Co. for $3 billion in cash.

Irene Esteves, CFO, Time Warner Cable: "Taking into account Insight's recent performance, ... this acquisition presents an attractive opportunity to enhance TWC shareholder value."

Time Warner Cable will gain more leverage to negotiate better terms with cable programming and equipment suppliers by absorbing Insight, the ninth largest cable MSO. Counting more than 14 million subscribers, Time Warner Cable is the nation's second largest cable operator.

Founded by cable veteran Michael Willner, Insight was one of the first cable MSOs to pursue advanced products such as interactive programming and advertising. It counts 547,000 high-speed data subscribers, 697,000 video subscribers and 297,000 voice subscribers. Insight has also deployed DOCSIS 3.0 on its systems.

Time Warner Cable said Monday that the Insight acquisition will allow it to save about $100 million in annual costs and capital expenditures through programming expense savings and other cost reductions. TWC Chief Financial Officer Irene Esteves also saw it as a boost for shareholders.

"Taking into account Insight's recent performance, $300 million in NOL value, the anticipated net cost synergies and lower capital intensity, this acquisition presents an attractive opportunity to enhance TWC shareholder value," Esteves said in the company news release.

For more:
- see the news release from Insight and Time Warner Cable

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