Several news outlets have reported in the last few days that Cablevision Systems (NYSE: CVC) is exploring the possible sale of Bresnan Broadband Holdings, a cable TV and broadband provider in the Northwest United States that Cablevision acquired just over two years ago.
Cablevision has not commented on the reports, and the reports themselves suggest any consideration of a sale may be in the very earliest stages, with no guarantee of a deal.
Cablevision placed a winning bid of about $1.37 billion in June 2010 to acquire Bresnan after the company's majority owner, Providence Equity Partners. The deal was completed in December 2010.
Bresnan was founded by cable TV industry icon Bill Bresnan, who died a few years ago. It primarily serves states in the Northwest including Utah, Colorado, Montana and Wyoming. At the time of its sale to Cablevision, it was pursued by as many as seven bidders, and presumed to be valued highly for the potential to sell more broadband services in those states. However, Bresnan did miss out on broadband stimulus funding in 2010 that it had applied for with a major fiber project in mind.
Reports on the potential Cablevision decision to sell Bresnan suggest that the East Coast cable TV giant may be looking to raise more money to invest in ongoing broadband upgrades in its core markets. Possible buyers suggested in the reports include major cable firms, such as Time Warner Cable (NYSE: TWC), Suddenlink Communications and Charter Communications (Nasdaq: CHTR).
- see this Bloomberg post
Cablevision beat out several other bidders to buy Bresnan
Bresnan missed out on broadband stimulus funding in 2010