Joseph O'Halloran ©RapidTVNews | 15-08-2011
Reports in the US are suggesting that that country’s second largest cable TV operator, Time Warner Cable (TWC), is on the verge of buying rival Insight Communications in a deal worth around $3 billion.
According to the leading US financial new organisation Bloomberg, the deal could well be announced and would be TWC’s largest deal since it floated off from former parent biggest Time Warner Inc. in 2009.
The deal would allow TWC to achieve the scale that it requires to keep an edge in a market that has become ever more competitive thanks to a double whammy of not only cut-throat rivalry among the cablecos but also because if the emerging treat of over the top (OTT) services, notably Hulu and Netflix, which have become more popular mostly at the expense of cable.
Insight is the ninth-largest U.S. cable operator, with 679,000 basic video customers and Bloomberg suggests that the wider footprint would let Chief Executive Officer Glenn Britt reach more customers and cut duplicate sales staff and infrastructure.