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Insight Fails to Find a Buyer
Most Companies Found Asking Price Too Steep
by Karl Bode 08:59AM Monday Aug 08 2011
After offloading a large number of Midwest markets to Comcast just a few years ago, Insight Communications (see our customer reviews) owners The Carlyle Group again began shopping the cable company around to potential suitors earlier this year. The company, which offers broadband, voice and TV service to roughly 750,000 customers across Illinois, Indiana, Kentucky and Ohio, had originally hoped to get somewhere between $3.5 and $4 billion. That number was too high for Time Warner Cable, Suddenlink Communications, and Charter -- all of whom dropped out in the early running. That left Mediacom Communications, Cablevision Systems and WideOpenWest as the only suitors, but they too have now either dropped out of the running or not bid. Carlyle will likely now be forced to lower the minimum $3.5 billion asking price.

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

Solution - sell in small pieces

The only way Insight will be able to get rid of their cable systems is to sell them off piecemeal. The economy is too screwed up to find a single buyer who wants to invest billions based on consumer based revenue.
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Eek2121

join:2002-10-12
Newton, NJ

No Wonder...

At a cost of almost $5,000 a subscriber, it'd take over a decade to make all that money back.

DataRiker
Premium
join:2002-05-19
00000

Re: No Wonder...

Its a buyer's market in this economy. You have to price accordingly or you don't sell.

Kind of analogous to people who have their homes overpriced by 30-50% and wonder why it won't sell.
patcat88

join:2002-04-05
Jamaica, NY
kudos:1

Re: No Wonder...

You dont take a loss until you sell.

OSUGoose

join:2007-12-27
Columbus, OH

A

TWC or WOW purchase will make sence here in Columbus, OH anyone else, unless they buy the whole company, it's gonna take alot to connect up to their networks, vs TWC and WOW allready here, and be simplier to integrate in this market.
scantor

join:2004-08-11
Columbus, OH

Re: A

The only guarantee in Columbus is that whatever happens, we're stuck with the worst broadband in a major market in the country.
Matt7

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

Re: A

I disagree - Selling the Columbus system would be an improvement. Inisght or ATT is the only option at my place and Insight isn't an option because they REFUSE to upgrade their CMH System.. Other insight markets get 'faster' speeds.. but NOT columbus.. Hell even Time Warner now offers Docsis 3 speeds in parts of their CMH market I believe.. and WOW I know is working on D3 upgrades to their system. I'd love to see either WOW or TW take over CMH from Insight.. or it be sold to someone who cares.
scantor

join:2004-08-11
Columbus, OH

Re: A

I have the same two options at my place. Time Warner isn't making anything better available right now, because if they were, we'd get it shortly after. Insight BB in CMH *is* Time Warner. If they got faster speeds, we would/will.

We can hope the situation changes, but selling Insight to Time Warner is a no-op, and WOW, I have to assume, just doesn't have the capital to do the job, or they'd already own the overbuild market by offering substantially more than TW or ATT.

I'm a WOW fan, but I don't think I can get it at my house, and even if I could, it's not dramatically better, just incrementally.

The future here, if it exists, is wireless. I expect that to outpace the cable plant rollouts here.

boop

@insight-bc.com

Re: A

said by scantor:

I have the same two options at my place. Time Warner isn't making anything better available right now, because if they were, we'd get it shortly after. Insight BB in CMH *is* Time Warner. If they got faster speeds, we would/will.

That's actually not true. TW is absolutely offering wideband in basically all of their service area in central Ohio now and all around the rest of the state as well. 30/5 and 50/5 speeds available. And while Insight RR in Columbus is essentially the same as TW (same back end or something) they do not simply offer the same stuff. Insight has no plan to match TW's speeds anytime soon despite TW's wideband being available for a couple months now. I'm in an Insight, AT&T, WOW area. Will be switching to WOW this fall when their D3 rolls out. Was with Insight for several years until they took 8 months to split a node they oversold. Switched to AT&T and they announced that they'd be implementing caps (not in effect yet but could be any day now) plus the bandwidth you pay for is shared between internet and TV so if you have a 24/3 connection (as I did) but are watching/recording 2 or more things it starts cutting into your available internet bandwidth. Ended up taking my speed down to 18/1.5 because of that crap.
dishrich

join:2006-05-12
Springfield, IL

There is NO Insight in IL!!!

Karl I don't know where you are getting this info from, but Insight has NO IL systems, since Comcast bought ALL of them out.
Bob61571

join:2008-08-08
Washington, IL
Reviews:
·MTCO Communicati..
·DIRECTV
·Frontier Communi..

Re: There is NO Insight in IL!!!

dishrich is correct..

All Insight systems in Illinois went to Comcast. In Indiana, Insight kept systems in southern Indiana. Comcast got ones in northern/central Indiana. Insight got all the rest in Kentucky and Ohio

Before the split up, Comcast had 50% and Insight had 50%. Insight had their name on the door, and operated all the systems. Eventually, both agreed to split the Midwest properties.