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Citigroup: Cablevision Likely to Be Sold
Sometime Within The Next Eighteen Months
by Karl Bode 12:22PM Friday Mar 15 2013
Rumors of a Cablevision sale to someone like Time Warner Cable have long been a centerpiece of broadband industry gossip, but those rumors appear to be gaining some serious momentum. Cablevision executives have been leaving the company in a steady stream since last year, including marketing's Jonathan Hargis, President John Bickham, and COO Tom Rutledge, who left to become Charter CEO. This week even saw the departure of one of the company's top PR man Jim Maiella to AMC, someone who has been helpful to me for a decade.

Perhaps all these gentlemen are just coincidentally getting amazing new job offers they can't refuse, or perhaps they know something we don't and/or have seen the writing on the wall. Either way, the rumors of a Cablevision sale are growing. Citigroup has issued a report this week claiming that there's about an "80%" chance that Cablevision will be sold sometime in the next eighteen months, in part thanks to recent Sandy-induced financial troubles:
quote:
"The story at Cablevision has changed a lot over the last year," Bazinet said. " The bull case seems remote. The bear case — with no equity value — is possible. And if the middle ground — our base case — plays out, Cablevision will see free cash rise, but management won't be able to shrink the equity materially.
"As such, we see few economic incentives for the Dolans to take the risk and hold out. We expect Cablevision will be sold in the next 12-18 months."
Sandy's impact on the company's wallet may be blamed, but if the continued exodus of top executives is any indication, a sale is something that has been on the radar for some time. The most likely suitor would again be Time Warner Cable, who has long wanted to expand their NYC-area footprint at the right price. With Cablevision starting to struggle, Time Warner Cable may soon be getting the price they've been looking for.

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Rekrul

join:2007-04-21
Milford, CT

...

If a sale to Time Warner does happen, what would it mean for current Cablevision subscribers?

Would the quality of service change? Would there be usage caps?

MovieLover76

join:2009-09-11
kudos:1

Re: ...

Maybe not immediately, but I'm sure eventually you'd see usage caps, quality of service could be impacted down the road if they don't keep up on networks upgrades, which cable vision has been pretty good about.

MxxCon

join:1999-11-19
Brooklyn, NY
said by Rekrul:

If a sale to Time Warner does happen, what would it mean for current Cablevision subscribers?

Would the quality of service change? Would there be usage caps?

It would be a complete loss for customers.
All of TW's services are more expensive. Their internet connection is slower. TW is very interested in implementing transfer caps. It will be one less competitor to VZ fios, so those customers will be at a disadvantage too.

I really hope FCC won't approve this buyout.

On the other hand, imagine if Google bought CV..
--
[Sig removed by Administrator: signature can not exceed 20GB]

IowaCowboy
Iowa native
Premium
join:2010-10-16
Springfield, MA
kudos:1
Reviews:
·Verizon Broadban..
·Comcast

Remember the '90s

Cable systems in the '90s were always changing hands. When I was growing up in Cedar Rapids (IA) the cable system there was always changing hands. First it was Cox, then TCI, then AT&T broadband before getting sold to current owner Mediacom.

According to some of the locals, the cable system in Springfield was owned by Continental Cablevision, then Media One then AT&T broadband before current owner Comcast.

It seems like the trend of cable systems changing hands has settled down. Comcast has owned the Springfield system since 2003 and Mediacom has owned the Cedar Rapids system since 2001.

It would be nice if Time Warner would buy the Springfield (MA) system. I've had good experiences with Time Warner when dealing with them at my Grandma's house.
--
I've experienced ImOn (when they were McLeod USA), Mediacom, Comcast, and Time Warner. They are much better than broadcast TV.

I have not and will not cut the cord.
TBBroadband

join:2012-10-26
Fremont, OH
Reviews:
·AT&T U-Verse
·MegaPath

Re: Remember the '90s

all of TWC is not the same. The thing with TWC is that each region operates as its own company. Different billing policies, prices, rates and fees and programming. Also are you sure you would like to support a company that likes their caps and lets not forget; that supports allowing an employee die because they didn't want another employee to take "valuable" phone time to save the life? TWC is not all green and wonders.

Methos

@charter.com
Maybe you should work for the History channel...
slow_move

join:2012-07-20
Coram, NY

1 recommendation

Time Warner

Time Warner would be a big step back of anyone using Cablevision. I always hate hearing that TWC may buy CV. If they have to be sold it would be nice if it were to a company that can shift into drive and not reverse. I had to deal with TWC in Brooklyn and Manhattan and it was never good. There I could at least switch to FIOS or RCN. Here I would be stuck.
josephf

join:2009-04-26

Re: Time Warner

Verizon offers FIOS in most of Cablevisions's footprint.

kickass69

join:2002-06-03
Lake Hopatcong, NJ

Re: Time Warner

You make that claim based on what exactly? Sure there is overlap but not as much as you think.

batterup
I Can Not Tell A Lie.
Premium
join:2003-02-06
Netcong, NJ

It's only FiOS they have to keep up with.

Can they do it?
Angrychair

join:2000-09-20
Jacksonville, FL

Optimum Online

I remember when OO was the envy of everyone 10+ years ago when almost every provider was doling out ~1.5mbps service for the standard ~$50/month and OO was doling out 10+mbps for the same price...

Oh how the mighty have fallen.

n2jtx

join:2001-01-13
Glen Head, NY

Re: Optimum Online

said by Angrychair:

I remember when OO was the envy of everyone 10+ years ago when almost every provider was doling out ~1.5mbps service for the standard ~$50/month and OO was doling out 10+mbps for the same price...

Oh how the mighty have fallen.

Indeed. Optimum Online was the envy of everybody. Now there are other ISP's that offer faster speeds for the same $54.95. Granted there are no caps, and that is nice, but I rarely approach the caps most ISP's currently offer.

I do hope they sort their problems out but I am not terribly optimistic. TWC, Charter and Comcast are all companies I would like to avoid.
--
I support the right to keep and arm bears.
tmc8080

join:2004-04-24
Brooklyn, NY
Reviews:
·ooma
·Optimum Online
·Verizon FiOS

Re: Optimum Online

said by n2jtx:

said by Angrychair:

I remember when OO was the envy of everyone 10+ years ago when almost every provider was doling out ~1.5mbps service for the standard ~$50/month and OO was doling out 10+mbps for the same price...

Oh how the mighty have fallen.

Indeed. Optimum Online was the envy of everybody. Now there are other ISP's that offer faster speeds for the same $54.95. Granted there are no caps, and that is nice, but I rarely approach the caps most ISP's currently offer.

I do hope they sort their problems out but I am not terribly optimistic. TWC, Charter and Comcast are all companies I would like to avoid.

Not so fast!! Road Runner was offering 15/2 (Comcast & other minority cable companies) WAY before Optimum Online was.. and 30/5 too. Then roadrunner was no more. The companies outside of the northeast and select west territories were the only places to have decent broadband until the early 2000s. Then several southern routes took hold towards Texas and Florida. AT&T buying Bell South was the nail in the coffin of competition Allowing the long distance Medusa of Ma Bell to buy back a RBOC was a huge mistake with DECADES long negative implications to telecom industry customer base, innovation, and competition.

Back on topic; If cablevision sells out to TWC, just like AT&T getting BS this will destroy competition in the northeast-- not right away to be sure, but little by little it will get hollowed out to a shadow of it's 1996, 2006 aspirations (2013 - 2019). There is no compelling narrative for NY, NJ and CT customers to become owned by TWC.

IMO, they could make more money though innovation, investment and evolving their business model (internal management shakeup would be a good idea too as things are running too sloppy leading to waste). They also relied much too heavily on the Long Island, NY suburbs for far too long in their cable-tv content holdings-- that market peaked in 2005 - 2007 and never recovered much ground.
josephf

join:2009-04-26

Re: Optimum Online

TWC and CV do not compete with each other.

mech1164
I'll Be Back

join:2001-11-19
Lodi, NJ

Oh great

Meh, not that i'm all that happy with Cablevision. Time Warner would be the pits. I need to move badly and be able to at least get FIOS. My town has had it for years, we were one of the first towns done. That being said my Apt complex never got done. The way it's run I doubt I will ever see it. Now I just need a job so I can get the heck out of here.
georgeglass5

join:2010-06-07
New York, NY

It would be great if

google purchased it... Hey a man can dream, no ?

Simba7
I Void Warranties

join:2003-03-24
Billings, MT

Selling off itself?

After selling Optimum West to Charter (ewww), I was wondering what was really going on behind Cablevision. Now we know.
johnner1999

join:2008-12-27
Litchfield

Re: Selling off itself?

buying them never made much sense to me... I know I'm thinking 'old-school' with geographic issues.
frdrizzt

join:2008-05-03
Ronkonkoma, NY
kudos:3

Re: Selling off itself?

Based on the reports, they made a good profit off the purchase & sale of Bresnan. It makes sense as an investment, not as a permanent part of the footprint.
Cobra11M

join:2010-12-23
Mineral Wells, TX

hmmm

I wouldn't count suddenlink on tryin to buy them out.., timewarner maybe but suddenlink or even charter could
Sammer

join:2005-12-22
Canonsburg, PA

Comcast

Assuming the government would allow it, Comcast might also be interested.
majortom1029

join:2006-10-19
Lindenhurst, NY
kudos:1

rumor

This has been a rumor for the past 5 years.

StudioTech
Off The Air

join:2001-10-10
Edison, NJ

Re: rumor

said by majortom1029:

This has been a rumor for the past 5 years.

Actually more than 10 years.
Kearnstd
Space Elf
Premium
join:2002-01-22
Mullica Hill, NJ
kudos:1

Re: rumor

is Citibank an investor in Cablevision or are they private? I was kinda thinking if they were an investor why not generate some rumor that would drive up stock prices.
--
[65 Arcanist]Filan(High Elf) Zone: Broadband Reports
TBBroadband

join:2012-10-26
Fremont, OH

Re: rumor

They are a public company. NYSE: CVC

anonNYC

@rr.com

I'm with TWC and I wanted OOL!

Dark day for OOL user if they get buy out by TWC. OOL offer better service and they have faster speed. TWC fastest speed still 50/5 mbps while OOL offer 50/8 for 10-15$ more from the standard price, and they have a 101mpbs tier even if it's price atless they have bragging rights unlike TWC. OOL>TWC that simple :/

aztr0

join:2007-10-28
Brooklyn, NY

1 recommendation

subject

So we are supposed to trust somebody from Citigroup? The same group that fell hard on its ass not so distant ago? I'll believe it when it happens.

captnhook

join:2001-02-20
NY

Re: subject

said by aztr0:

So we are supposed to trust somebody from Citigroup? The same group that fell hard on its ass not so distant ago? I'll believe it when it happens.

I was thinking exactly the same thing.
If this was to actually happen (and that's a pretty big if), I would hope the FCC wouldn't approve a TWC buyout.

JE
JE 's BACK BABY
Premium
join:2000-12-15
Charlotte, NC

REALLY? OMFG

John and Tom left CV? WHAT?

I have not lived up there since 2011, so all i get is NC news...lol
I would have never thoguht CV would sell out.
I wonder if OOL speeds are still the same ...I miss it. Nothing like it.

TWC speeds are good, but the network really is bad and speeds are inconsistent most of the time.

I worked for CV as a CSR from 2006-2011, then I resigned and relocated to Charlotte. I now work for TWC down here.
If that were to happen, I would love to come back, but I work for TWC Business Class and they have made Charlotte the Business Class headquarters...DAMN!

I love Business Class M-F. I would never want to work in a Residential environment again.

JE

Forsaken77

@optonline.net

Where's All The CV Haters Now??

It's ironic that most of Cablevisions subs are bitching & moaning about the service on a daily basis, but as soon as you find out that TWC might buy Cablevision you're wishing things would stay the way they are now. See people.... Yku might get your way, no more Cablevision and their superior innovation in the industry. Be careful what you wish for, you might just get it! On a tangent... Wasn't Cablevision just ranked the best streaming service in the nation, by Netflix, second only to Google? Yea, I thought so.
tmc8080

join:2004-04-24
Brooklyn, NY
Reviews:
·ooma
·Optimum Online
·Verizon FiOS

Re: Where's All The CV Haters Now??

said by Forsaken77 :

It's ironic that most of Cablevisions subs are bitching & moaning about the service on a daily basis, but as soon as you find out that TWC might buy Cablevision you're wishing things would stay the way they are now. See people.... Yku might get your way, no more Cablevision and their superior innovation in the industry. Be careful what you wish for, you might just get it! On a tangent... Wasn't Cablevision just ranked the best streaming service in the nation, by Netflix, second only to Google? Yea, I thought so.

The course of events would become a potential lightning rod for reforms as the NY Metro market is brimming to the top with fiber optic cable, and to think that companies would dare offer broadband on a capped & overage basis would have these companies strung up by their short & curlies before they'd have a chance to do that to MILLIONS of northeast customers. Beyond that, it would pave the way for NEW competition in the northeast marketplace rather than close it down(long term). I don't know about conservative middle America, but here in the northeast these are quality of life & voting issues.

ddg4005
Premium
join:2001-08-22
Bronx, NY

Cablevision likely to sold.

Wouldn't it be something if Cablevision is sold to Verizon? Maybe then I'll finally get Fios !
--
A man must have a code -Bunk
tmc8080

join:2004-04-24
Brooklyn, NY
Reviews:
·ooma
·Optimum Online
·Verizon FiOS

Re: Cablevision likely to sold.

said by ddg4005:

Wouldn't it be something if Cablevision is sold to Verizon? Maybe then I'll finally get Fios !

Anti-trust issues.. as I said earlier, the Northeast market brimming with fiber optic cable is too important a market even for national security reasons to leave in the hands of ONE carrier, let alone for the consumer residential markets. Ma Bell used to tell the federal government WHEN & on what terms they'd fix those ISDN and T-1 lines which linked various military organizations together. Not anymore.

DAOWAce

join:2006-10-25
Flanders, NJ

Wtf?

"Sandy induced issues"

Really? I saw it as us finally getting all the old garbage infrastructure replaced so problems finally stopped.

Instead, what did they do? Raise internet prices by $5/mo with no benefit, raise cable prices and get rid of promotions left and right.

Now this buyout rumor getse some roots?

Jesus christ; why didn't Verizon wire FiOS down my street 3 years ago? It sucks knowing it's in walking distance but I can't get it.