World VoIP NewsCablevision purchases Bresnan for one and a half bnCablevision purchases Bresnan for one and a half bn

Cablevision purchases Bresnan for one and a half bn

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Cablevision Systems Corp, the fifth-largest US cable operator, has agreed to buy Bresnan Communications for USD1.36 billion, according to a report carried by Bloomberg.
Cablevision competed against bids from TPG Capital, BC Partners, Suddenlink Communications and Ascent Media Corp. Bresnan Communications was founded in 1984. The company initially operated cable systems both in the Upper Midwest and internationally, before focusing on the Rocky Mountain states.

 Analysts were cautious about the transaction, expressing concerns about the purchase price and the strategic value of cable systems far away from the company's core New York City market.

Bethpage, N.Y.-based Cablevision (CVC 25.38, +0.15, +0.59%) , the nation's fifth-largest cable operator, is set to acquire Bresnan through a newly-formed subsidiary that will pay about $1 billion in debt. Cablevision will make an equity investment of less than $400 million.

Bresnan owns systems in Colorado, Montana, Wyoming and Utah that serve more than 300,000 basic cable subscribers. The company's services are available in more than 630,000 households.

Separately, Cablevision said its board of directors has authorized the repurchase of up to $500 million of its Class A common stock.

Craig Moffett, cable analyst at Sanford C. Bernstein & Co., said the Bresnan deal "is not what investors had in mind," and that many will be "frustrated" that the company didn't use its financial resources to acquire more shares of Cablevision itself, for far less money, MarketWatch claims.

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