Time Warner, Comcast Buying Adelphia (Reuters)

[Up2Late]

(When did Time-Warner and Comcast become partners? This can't be good for my rates.)

Time Warner, Comcast Buying Adelphia

Fri Apr 8, 2005 03:48 PM ET

By Julie MacIntosh and Kenneth Li

PHILADELPHIA/NEW YORK (Reuters) - Media group Time Warner Inc. and its bidding partner, top U.S. cable TV operator Comcast Corp., have reached a deal to buy bankrupt cable operator Adelphia Communications Corp. for nearly $18 billion, according to a source familiar with the matter. The tentative deal with Adelphia's creditors beat back a last-minute rival offer from cable firm Cablevision Systems Corp., which another source said was preparing a bid of $16.5 billion in cash.

Time Warner and Comcast have been viewed for months as the likely winners of the auction for Adelphia's 5.3 million subscribers. Adelphia is reorganizing its business in bankruptcy court, but it agreed more than a year ago to simultaneously entertain bids for its assets. The deal, finalized late on Thursday after several days of frenzied activity, is now subject to approval by a bankruptcy court judge and a majority of each class of Adelphia's creditors.

Time Warner, which is contributing a large percentage of the bid itself while Comcast antes up about $2 billion in cash, could stand to reap several key benefits from the acquisition. It could become the dominant multiple system operator in the highly sought-after Los Angeles market by garnering subscribers from both Adelphia and Comcast, Sanford Bernstein analyst Michael Nathanson said in a research note. And it can unwind a 21 percent stake Comcast owns in its Time Warner Cable business by trading some of its new Adelphia subscribers to Comcast.

Comcast, for its part, could get 2 million new cable subscribers and the chance to liquidate its stake in Time Warner Cable in a swap that could save it about $1 billion in taxes.

(more at link above)

[Goldom]

1. while reading the title while rubbing my eye,

I thought they were buying Philadelphia. I was like, "What the ----!"

That's my story for the day. byebyenow.

[Up2Late]

2. How much would Philadelphia go for these days?

They get one mega-corp as partner, and who knows.:shrug:

[Mallove Fan 71]

3. Soros recently bought a ton of Time Warner stock

Buffett, Soros make cable buys (CNN)

Doesn't mention controlling interest. Still, sounds like it might be a win for our team.

[Up2Late]

4. Hope so, if Buffet stays out of trouble

the SEC is looking into some recent "re papering" of some deals with AIG.:evilgrin:

[high density]

5. My Adelphia rates have gone up about $15/mo. in the last year

At $53 a month, it's still less than what satellite TV would cost with local channels and three converter boxes. I hate Adelphia and I think having either Comcast or Time Warner serve my area will be an improvement.

[Maine-ah]

6. same here.

[Up2Late]

7. You might be in luck, that's about what Comcast has raised my rates...

...to, since they took over ATT Broadband. I get the lowest cost Digital Cable they offer, it's expensive, but they have been throwing in more and more "Free" "On-demand" movies, such as "Bush's Brain" and "Uncovered."

[SoCalDem]

8. Comcast used to offer CBC, which I wish we got on Dish

Adelphia was AWFUL :(

[w4rma]

9. Another mega-media merger. More consolidation. Bad. (nt)