Another small cable provider is gobbled up by the big fish in the pond.
The once diverse selection of cable providers keeps getting smaller, and yet another regional provider has been bought up. Time Warner will be picking up Insight Communications at a price of $3 billion in a deal that's expected to close by the end of this year.
With cable subscribers on the decline recently, increasing a customer base is more important than ever. This new acquisition will be bringing Time Warner 679,000 new subscribers and about $100 million in cost savings.
"We believe in our business and its long-term prospects and have long thought that Insight's well-run, technologically advanced systems would fit well with our Midwest operations," says Time Warner CEO Glenn Brit. "With the deal announced today, we are able to acquire those systems at an attractive price that is consistent with both our disciplined approach to M&A and our capital allocation strategy."