Is the $125 million investment made by Crestview Partners into Wow! a sign of how cable consolidation will get done going forward?
That's the thesis of Bloomberg Intelligence analyst Paul Sweeney, who says that with many of the top cable companies taken off the board in recent purchases, we may see a flurry of equity-stake deals involving smaller MSOs.
"Charter still says they are interested," Sweeney said in a Bloomberg BNA report. "But after Cox (Communications, the fourth largest U.S. MSO) there is really nothing out there of size, so lots of ones and twos, singles and doubles. We'll see some smaller companies get bought, particularly if interest rates remain relatively low. The leveraged credit market and the high-yield loan market loves the cable industry." Article