Cablevision Systems has ponied up an all-cash bid of $1.36 billion to buy Bresnan Communications from Providence Equity Partners, beating out at least six other bidders in the process. The deal will put Bresnan's 300,000-plus subs in Colorado, Montana, Wyoming and Utah into the Cablevision family of closely clustered franchises in the New York metro area that includes Long Island, Connecticut and northern New Jersey.
Bresnan offers Cablevision the opportunity to expand a bundle of advanced broadband services including digital video, voice and high-speed data in areas relatively free of competition outside DBS. This will mark a refreshing change for the MSO, which is in potentially the nation's fiercest battle with Verizon's FiOS service in its traditional markets.
"Bresnan is a well-managed company that has invested wisely in its operations and has pursued a strategy which is aligned and quite similar to Cablevision's," said Tom Rutledge, Cablevision's COO who will oversee the Bresnan properties.
Cablevision beat out some top competition, including always-active Suddenlink Communications and cable icon John Malone. While Bresnan's operations are based in the west, its headquarters are in Purchase, N.Y. Cablevision, with headquarters in Bethpage, Long Island, will run its new acquisition via a newly formed subsidiary that has standalone financing.
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