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Insight Communications On Auction Block
Source: Carlyle Group Looking For $3.5-$4 Billion
by Karl Bode 08:54AM Wednesday Mar 23 2011
After offloading a large number of Midwest markets to Comcast just a few years ago, Insight Communications (see our customer reviews) is again shopping itself around to potential suitors. Anonymous sources tell Reuters that Insight's owners, The Carlyle Group, have put the company on the auction block, and are hoping to get somewhere between $3.5 and $4 billion. The company offers broadband, VoIP and TV services to roughly 750,000 customers across Illinois, Indiana, Kentucky and Ohio. "We have been the subject of those rumors since I can remember," an Insight spokeswoman says to Reuters, neither confirming or denying the report. "Our goal is to stay focused on building our company and proving all of its products, as well as its customer service."

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hottboiinnc
ME

join:2003-10-15
Cleveland, OH

Interesting

Well we know TWC won't take Insight. But Comcast could again and then sell the Ohio Market off to WOW or RCN. Although there is small number of overbuilders. Cities in Ohio are NOT allowed to compete with private companies so that rules out any city taking part of the networks as well.

This shall be interesting; I can see WOW! taking them and shutting down the network where it would be double coverage and using the rest to expand much easier. But in Ohio who ever would take it; would have to kill the Insight/RoadRunner deal for Internet.

aciddrink

join:2000-08-26

Re: Interesting

Ugh, I just moved to an area that has Insight, and I feel lucky. I used to live in an area that *had* insight, and was sold to Comcast, which I hated. I sure hope that doesn't happen again.

Maybe I'm just cursed and anywhere I live, Comcast will follow?

Mr Fel
Premium
join:2008-03-17
Louisville, KY

Re: Interesting

Let's hope not, between the soon to be capped AT&T and Insight, I'd rather not have Insight get sold out to a company that caps as well.
--
It is easier to not do something dumb than it is to do something smart.

Rambo76098

join:2003-02-21
Columbus, OH

Re: Interesting

No kidding. I'm glad that I saw this news post, in my quest to dump AT&T, I was looking at Insight and WOW. Insight might be out of the running now...
hottboiinnc
ME

join:2003-10-15
Cleveland, OH

Re: Interesting

Insight HSI is nothing special in Ohio. It's just regular RoadRunner and nothing more. Those customers don't get anything updated unless RoadRunner decides to update those speeds. and as far as the cap- Yes you would have one. Check the help.rr.com site and check on the ISP TOS/AUP it states a cap but does NOT tell you what the cap is nor will any CSR.

Rambo76098

join:2003-02-21
Columbus, OH

Re: Interesting

I've heard that about RR before, do they actually do anything when a user exceeds this mystical cap?
Sammer

join:2005-12-22
Canonsburg, PA
It's doubtful Comcast will touch it. $3.5 to $4 Billion is a lot even for them after what they spent for NBC Universal. IMHO none of the five largest cable companies will be the buyer so the real question is who amongst the smaller ones wants to be bigger and can come up with the money?
iansltx

join:2007-02-19
Austin, TX
kudos:2

Re: Interesting

Comcast has plenty of money...they cpuld prpbably swing this purchase.

Otherwise maybe ABRY partners (owns RCN and others) will buy.
hottboiinnc
ME

join:2003-10-15
Cleveland, OH

Re: Interesting

Comcast won't want this. They sold off their half of the company remember? And no major company will. It will be between RCN and maybe WOW! and a few other private investment companies. That's it.

OSUGoose

join:2007-12-27
Columbus, OH
Dont be too shure, it would make the most sence sice Insight is allready paying TWC and operating a RR internet product, it wouldent require much change on that part. Also TWC surrounds Insight's territory in Columbus, so tapping into TWCs network wont require much effort to integrate. WOW! dosent make sence since they 99% of the time are servicing the same address as Insight and/or TWC, plus WOW! is too busy spending the cash right now on their D3/all digital roll-out here, plu the fact that they too are owned by a similar if not the same private equity group.
hottboiinnc
ME

join:2003-10-15
Cleveland, OH

Re: Interesting

TWC won't take it. And as far as operating on the RR network; that has NOTHING to do with TWC. RoadRunner operates as a separate company owned by Time Warner. NOT Time Warner Cable. TWC could drop them as the ISP if they wanted to bad enough and deploy their own. Insight Ohio just never actually decided to roll out their own HSI product.

And WOW! may have their $$$ tied up in upgrades but at least it shows something about them unlike RoadRunner and Time Warner Cable.

TWC-Mid Ohio would have already made that bid; but it's up to TWC to do it. Plus when they're busy off loading Adelphia markets why would they want to buy some someone else right now? They really have their hands tied at trying to compete as it is and can't.
YellowDart

join:2003-07-09
world
How much you want to bet Cablevision goes for it. Especially after the Brenson acquisition.

FFH
Premium
join:2002-03-03
Tavistock NJ
kudos:5

Carlyle Group is a turnaround & dump owner

The Carlyle Group is an investment group with one main purpose - to buy undervalued, struggling companies; stop the bleeding & stabilize them; & then sell at a nice profit. They very rarely hold on to investments to actually run the company. It is not surprising at all that they would be trying to sell off the rest of Insight.

There was a good movie that popularized the concept that the Carlyle Group follows: Other People's Money. »www.imdb.com/title/tt0102609/
--
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Singular
Premium
join:2008-08-13
Shelbyville, KY
kudos:2

Don't Go

I love Insight, best cable company I have ever had. I really hope if they do sell that it won't change the company much. Something tells me that there will be a lot of unhappy people if they do.
--
-Singular
Skippy25

join:2000-09-13
Hazelwood, MO

Over priced...

So that is 750,000 customers for $3.5 billion? That would be $4666.67 per customers. It would require them to charge $130 a month for 3 years to breakeven on that deal. And that is just the purchase price and does not include the on going operations for those years.

We all know in today's have to have it now stock jockeys, investors will not stand for that!

AMDUSER
Premium
join:2003-05-28
Earth,
kudos:1
Reviews:
·AT&T U-Verse
·Time Warner Cable

1 edit

Re: Over priced...

Most bigger cable companies, like Time Warner Cable, Comcast usually have debt that averages about $2,500 per customer..
The price The Carlyle Group is asking is almost twice that... but it also depends on the number of homes the cable systems pass - who can get service.

The only company I am aware of whos debt per subscriber was higher than that, was Charter.. shortly before filing for bankruptcy.

If it is any indication, CrestView Partners, which owns 42% of Insight, also owns [with other bondholders] Charter Communications.. it would not be surprising if they had Charter buy Insight..

IowaMan
Premium
join:2008-08-21
Grinnell, IA

1 edit

Mediacom will follow

Seeing how Mediacom went private this year, I predict that Mediacom will shop itself around next year.

As Insight went private in 2004 and in 05 the Carlyle group bought the company for $2.1 billion
rjbasye

join:2000-05-24
Dry Ridge, KY

Re: Mediacom will follow

I can't see insight being sold for 3-4billion in this economy. TWC has a system in cincinnati accross the river from NKY which they may buy up.
hottboiinnc
ME

join:2003-10-15
Cleveland, OH

Re: Mediacom will follow

Insight won't buy anything from TWC let alone part of the TWC-Cinci market.
rjbasye

join:2000-05-24
Dry Ridge, KY

Re: Mediacom will follow

The Reuters article mentions Charter & Suddenlink among those who are interested so I doubt TWC will bid for them after reading that.
Matt7

join:2001-01-02
Columbus, OH
Reviews:
·AT&T U-Verse
·Insight Communic..

Re: Insight Columbus OH


I could see the Columbus OH system of Insight going to TW. It would make sense since Insight in this market services areas that TW dosen't. Having Insight columbus would give TW the full columbus market. (and connecting to the insight plant would not be too hard for TW to do since I am sure enroute to other areas TW's fiber crosses Insight area.

Snowy
Premium
join:2003-04-05
Kailua, HI
kudos:6

It's worked on them...

Maybe their looking for a private-equity firm that's as misguided as they are?
brad152

join:2006-07-27
Phoenix, AZ
Reviews:
·CenturyLink

no....

Oh i hope this does not happen as TWC sucks terribly in Columbus and Insight was one of the last decent cable companies in Columbus and it will be a shame to see them go.

WOW is alright, but their HD sucks, and i honestly prefer the UI that Insight uses over the stupid Navigator that TWC uses, and dont get me started on SARA that WOW uses.

Insight was the only cable company i've ever been happy with. Right now i am in Phoenix finishing up my degree and have Cox and hate them, hated Time Warner, and i did like WOW over Time Warner but Insight was the best one i've ever had.. When i move back later this year, i've been looking at Insight only places as that's all i'm interested in having.
Body Count

join:2010-09-11
Columbus, OH

Re: no....

said by brad152:

go.

WOW is alright, but their HD sucks, and i honestly prefer the UI that Insight uses over the stupid Navigator that TWC uses, and dont get me started on SARA that WOW uses.

WOW HD is getting bigger now. They are upgrading their system by removing analog stations and turning them over to digital which frees up bandwidth for more HD. WOW is going to have a crapload of new HD stations shortly.
brad152

join:2006-07-27
Phoenix, AZ

Re: no....

Yeah, but call me when they stop using SARA and we'll talk. the UI their boxes use is horrific
Body Count

join:2010-09-11
Columbus, OH

Re: no....

They announced a whole house DVR solution by the end of the year. They haven't officially said which brand of unit they will be using but someone on the inside leaked out this:

»www.arrisi.com/solutions/whole_h···ndex.asp

But I agree with you. The current DVR box is bad. Very bad. It's the one thing I hate the most about WOW cable. And the fact we have to lease it for $12.99 a month makes it even worse.
brad152

join:2006-07-27
Phoenix, AZ
Reviews:
·CenturyLink

Re: no....

Well i have a TiVo because of SARA. Cox just got rid of it in favor of Passport down here in Phoenix (what TWC use to use before they rolled out the stupid navigator bloatware they use now)

Passport is by far the best Cable Co software that i've seen (although Motorola's UI is nice too)

helpdesk guy

@fuse.net
they will most likely use a PACE multiroom dvr. mabey model rgn150 denali. this is being used in other systems