RCN May Go on the Block RCN Considers Sale, Hires Blackstone as Adviser, People Say Original article @ Bloomberg By Dana Cimilluca and Brett Cole Sept. 13 (Bloomberg) -- RCN Corp., a U.S. provider of cable- television, Internet and phone services in cities including New York and Boston, may put itself up for sale, two people with knowledge of the plans said. The company hired Blackstone Group LP [...]
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 aj004
join:2006-05-28
Forest Hills, NY | Its getting close to November. Deal was predictable :-) It is getting closer to November right now.
RCN's assets were ALWAYS THE CROWN JEWEL. Ive always believed this from day 1. As we head to the web 2.0/web 3.0 era, and with other competitive outlook shifts and everything else, this deal HAD TO BE DONE. When you look at 100% of EVERYTHING, the timing makes 100% sense.
People in RCN regions get ready for some KICKASS BROADBAND because RCN will finally upgrade that infrastructure and be free from its financial constraints. The Northeastern Corridor is a terrific fit. As FTTP and other upgrade costs are coming down, I have NO DOUBT this infrastructure will be upgraded to its TRUE potential.
As we head to FIOS, Time Warner Cable IPO, Sprint WiMax, and the demise of the local copper CLECs, RCN already has the fiber in place so the winners now are the people with their OWN LAST MILE INFRASTRUCTURE. This essentially sets up RCN's asset for it to finally get built out in the areas by its core fiber lines and to take advantage of additional homes passed as well as to upgrade its infrastructure.
I can even speculate as to who the buyer will finally be.  But I will NOT NAME NAMES. :P | |
|  |  DareiusIt's a beautiful day in the neighborhoodPremium
join:2002-11-12
Elmhurst, NY | Re: Its getting close to November. Deal was predictable :-) As long as it is not TWC buying out RCN's NYC assets, I will be happy with whomever buys it. As long as they keep the service tiers offered currently. | |
| | | aj004
join:2006-05-28
Forest Hills, NY
4 edits | Re: Its getting close to November. Deal was predictable :-) If the sale goes through, it will 100% not be a duplicative company.
We will have RCN's infrastructure to choose from which will expand to more areas served. We will have Time Warner Cable to choose from which is going IPO later this year/early next. We will have Verizon FIOS to choose from. And we will have Sprint WiMax to choose from. Choice is NOT going down, but rather up.
Triple play will come from the incumbent cable provider, the telco and the overbuilder. As for Sprint WiMax I assume it would be a doubleplay option but I cant say for sure.
MDUs though are tricky cause it could be Verizon FIOS in one, RCN in the other, etc.......... Depends on the deal struck with the building. My building now has Time Warner Cable, RCN and Verizon DSL. Sprint WiMax is wireless so thats a different ballgame altogether.
As for the SF deal, I said it was consummated because of outlook changes in the marketplace. It hasn't been finalized yet and so we don't know for certain if it will go through and the price seemed rather high, but if its finalized so be it which takes the SF market out of the equation for the acquirer of RCN and one wonders what will happpen to Chicago and LA markets.
The SF acquirer leaves the asset in WORSE shape than it was with RCN proper IMHO but that remains to be seen.
As for the Northeastern Corridor markets, there are acquirers out there who would leave the asset as better off and Im hoping it is ONE of those but one can't be certain.
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| | | Weren't you the one who predicted the california sale wasn't going to happen? | |
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