What's Going On at Cablevision?
Company May Be Sold, More Likely Going Private
As expected, with the resignation of two top Cablevision executives in two weeks
, the rumor mill has started to churn with rumblings that Cablevision could be looking to sell. The usual assortment of sector analysts believe the company could be gearing up for a sale -- where the most likely deal would involve Comcast and Time Warner Cable splitting Cablevision's footprint. A more likely option would be that the Dolan's are preparing to take Cablevision private
, given the Dolan's wouldn't get the kind of money they're looking for:
ISI Group Inc. analyst Vijay Jayant doesn't see M&A as a likely scenario for Cablevision, telling Light Reading Cable that the gap between what the Dolans would want and what an MSO like TW Cable would be willing to pay is likely far too wide. TW Cable, he said, would likewise be concerned about seeing its stock getting penalized for such a move, as it is now for its pending $3 billion acquisition of Insight Communications Co. Inc. . So that might make it gun-shy to pull the trigger on an even bigger deal. (See Time Warner Cable Splashes Out $3B for Insight .)
One of Cablevisions problems with being public, analysts note, is that they were so successful early at getting users signed up for triple plays and higher-end broadband tiers -- that they currently find it difficult to appease investor thirst for quarterly gains as they battle Verizon for marketshare. This would be the company's fourth attempt at going private, with investors angry previous deals undervalued the company. With assets like Madison Square Garden and AMC Networks since shaved off, the move could have a greater chance of success.
| |Simba7I Void Warranties
Nope.. If we get bought out by Comcrap, I'm freakin' done with ISPs.
I've heard from my friends that ever since CV took over Bresnan here, life has been absolute hell. I could only imagine what would happen if CC took over.
CV did a ton of policy changes at Bresnan. If they would've left them alone, I'm sure the employees and customers would both be happy. Seemed to work before the takeover.
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said by IowaCowboy:While this holds as a general comparison of cable companies, if I'm a Cablevision subscriber and Comcast becomes my new ISP...I'm jumping ship to Verizon. Comcast provides a reasonable service, but:
I'd rather have Comcast than Time Warner Cable.
I would take Comcast over Time Warner Cable any day.
- Cablevision offers 100/15 service for $110/month with 5 static IPs
- Comcast's current offering at that price point is 22/5 (or 25/4) with 5 static IPs for $120/month
Plus, Cablevision has been moving to split more nodes & improve their overall network footprint. As long as your node isn't overloaded, access to the internet works fine.
Comcast, on the other hand, overloads their transit and latency suffers during peak hours. Throughput is usually decent, but be prepared for frustration if you try to download something and play a game or make a VoIP call at the same time.
Re: Problem: huge gap between asset value & market value
said by Rick4769 :I totally disagree. The privatization rumor makes lots of sense to me. Both generations of Dolans have managed to milk profits while pushing the company and its technologies to the upper echelon of the industry. They've repeatedly withstood every storm and public thrashing, each time getting richer. They'd like nothing more than to grab their company outright and save it for the next generation of Dolan robber barons. Its not like the family knows much of anything else since the 60's.
I think the Dolans are finally going to cash out since it is apparent that they can't run a cable company.
said by Rojo:Could have been so much better if the rest of the industry wasn't tugging hard in the OTHER direction towards stagnation, usage based billing, overages, and charging MORE for LESS. Localized comeptition doesn't function isolated from the rest of the industry. This is a prime example of why we don't have 50-100 megabits today for the price we've seen 10-20 megabits for the last DECADE! said by tmc8080:
What I was alluding to was will there be a "broadand war" that we've long lamented....
Who laments (regrets) broadband wars? The Vz vs. OOL wars are why we customers have such great tiers now. Competition, baby! It's a beautiful thing.