| RCN acquired I see this morning news that RCN has been acquired.I wonder if that wil mean any changes in services or offerings going forward? |
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 benjaminAll propositions are of equal valuePremium
join:2000-12-20
New York, NY
1 edit | Link, for those who haven't read:
»RCN Corporation to Be Acquired by ABRY Partners |
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| reply to jonbrach
I also wonder what this means for customers...the timing is also interesting as it happened shortly after the official Tivo announcement |
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| Fingers crossed that his turns out to be a good purchase for the customers...... |
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tvdrew
join:2008-08-20
Washington, DC Reviews:
 ·RCN CABLE
1 edit | reply to jonbrach
I would guess the timing with the Tivo announcement was just coincidence.
ABRY is a private equity firm, so if the strategy is typical they think that RCN is undervalued and underperforming, they will come in with some management oversight to determine ways to cut costs, increase customers, and increase revenues. And then once they've increased the profitability of the company (if they do) sell it off or sell off most of their equity interest for (they hope) a profit.
On the one hand, they may make improvements. On the other, they may try to squeeze out additional revenue in ways that aren't great for customers.
They bought and then sold WOW, and the reviews of WOW in this forum seem to be pretty good. Although hard to know whether the good reviews started coming after ABRY sold them in 2006.
»www.abry.com/Home/Investments/Portfolio.aspx |
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nycitynyPremium
join:2005-08-09
New York, NY | reply to jonbrach
I am less concerned about RCN's customers and more concerned for their employees. This definitely is BAD news for them. Let's hope RCN doesn't end up getting sold off to Time Warner or something like that. Competition is good. |
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tvdrew
join:2008-08-20
Washington, DC Reviews:
·RCN CABLE
| reply to nycityny
Re: RCN acquired said by nycityny:I am less concerned about RCN's customers and more concerned for their employees. This definitely is BAD news for them. Let's hope RCN doesn't end up getting sold off to Time Warner or something like that. Competition is good. That's unlikely to happen, because either the FCC or the antitrust folks would stop it anywhere there's an overlap. |
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JimFPremium
join:2003-06-15
Allentown, PA
1 edit | Re: RCN acquired Of course. But if you buy into the logic that it is not "pro consumer", how did you think that companies come into existence to begin with? The investors don't do it to lose money, and the customers don't buy the service if they don't want it. The purchaser here, if they want to make a profit, will have to provide service that customers are willing to pay for while still increasing the value of their investment. It may work, it may not. That is business. |
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rody_44Premium
join:2004-02-20
Quakertown, PA | reply to jonbrach
Re: RCN acquired Word at other cable companies is its being bought to break up and sell in pieces. |
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| reply to jonbrach
How do they cut costs?
There is not much to cut.
They will try to milk customers. |
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Reviews:
·RCN CABLE
| Re: RCN acquired ABRY Partners Investments
Cygnus Business Media
In August 2009 Cygnus, unable to reach an accord with one of its 24 creditors, filed for Chapter 11 bankruptcy protection.
Muzak Holdings
On 10 February 2009, Muzak Holdings LLC filed for Chapter 11 bankruptcy protection.
Citadel Broadcasting
The Wall Street Journal reported Dec. 11, 2009, that Citadel plans to file for bankruptcy by the end of the month.[1]It did so on December 20, 2009. |
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JimFPremium
join:2003-06-15
Allentown, PA | reply to Anon
said by BainCDR:If I was speaking to some top MBA Graduates here there would be interesting discussions. Cost containment and profit generation is what the LBO is looking for here. But you always need consumers to be able to do this. Yes, but first you would need some argument worthy of the discussion. The LBO owners will be looking for the same thing as the original owners. The question is only whether they can do it better. Unless you are opposed to the free alienation of property in the free market system, there is no reason to oppose it. |
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| reply to jonbrach
Remember, Could sum of the pieces of RCN, be worth more than the whole? They may be looking at selling off pieces or regions of RCN's coverage. |
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nycitynyPremium
join:2005-08-09
New York, NY Reviews:
 ·VoicePulse
·PHONE POWER
1 edit | reply to jonbrach
Re: RCN acquired My brother and I were talking about this and it might not be as bad as has been posted here.
Looking at Abry Partners website it seems that they are investors in media companies where they partner with strong management to keep the concern going.
So this either infuses more money into RCN for greater innovation, leads to its demise or absorption into another cable outfit, or something in between. Time will tell. |
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