US West unveils $10bn move into cable TV
In a significant reshuffle of the cable television industry, US West, the regional telephone company, announced plans yesterday to purchase Continental Cablevision, America's third cable operator, in a $10.8bn deal.
The transaction comes in the wake of the telecommunications deregulation bill recently passed by the US Congress allowing telephone and television cable companies to enter into each other's territories. It should transform US West, which already has an important stake in the cable interests of Time Warner, into a formidable power in the cable sector. It would serve nearly one of every three US households connected to cable as well as an additional 13.9 million homes internationally.
US West is alrady a player in the UK cable and telephony markets, via Telewest, its London-listed joint venture with major US cable company TCI.
Separately yesterday, AT&T unveiled ambitious plans to get into the Internet market. The telecommunications giant said it was launching a new Worldnet service to offer a low-cost connection to the Internet and the worldwide web.
Contentinal Cablevision has 4.2 million subscribers as well as holdings in programme companies which include Turner Broadcasting.
Chuck Lillis, who heads US West Media, said in a statement: "The Contentinental properties are widely recognised as some of the best-run and best-clustered cable systems in the world". US West will pay $5.3 bn in cash and stock for Continental's shares and assume the company's debt, put at $5.5bn.
It remains unclear how the transaction will affect US West's 25 per cent holding in Time Warner Entertainment, the unit of Time Warner that includes both its cable operations and its HBO programming arm. USWest is locked in a court battle with Time Warner over its attempt to buy Turner Broadcasting. USWest may be signalling a desire to buy out Time Warner's own cable operation or to relinquish its interests the media group altogether.
Meanwhile, US West's UK associate, Telewest, yesterday threw its weight behind a new marketing campaign to develop the struggling cable market in the UK. The industry is expected to spend pounds 12m promoting cable, in addition to spending by the main operators.
Alan Michaels, chief executive of Telewest, said the industry "needed to be proactive in promoting cable, now that UK networks are one- third built.
- 1 Notting Hill Carnival: Woman shares selfie after being ‘punched in face for telling man to stop groping her’
- 2 Keira Knightley topless: Usually conservative actress does own take on #Freethenipple campaign for Interview Magazine
- 3 Daily Show's Jon Stewart destroys Fox News for its Ferguson coverage
- 4 When elitism grips the top of British society to this extent, there is only one answer: abolish private schools
- 5 Terror threat level raised to severe as PM warns Isis risk could last for decades
Keira Knightley topless: Usually conservative actress does own take on #Freethenipple campaign for Interview Magazine
YouTube video posted by Isis militants shows 'execution of 250 Syrian soldiers'
Botched ice bucket challenge leaves man critically injured after plane drops hundreds of gallons of water
Terror threat level raised to severe as PM warns Isis risk could last for decades
Isis 'A Message in Blood' video shows beheading of Kurdish man in Iraq
Exclusive: We share blame for creating 'jihad generation', says Muslim strategist
Robin Williams Emmys tribute led by Billy Crystal criticised for including 'racist' joke about Muslim woman
The Rotherham child abuse scandal is a tale of apologists, misogyny and double standards
Scottish independence TV debate: Pumped-up Alex Salmond bounces back in bruising second round against Alistair Darling
Do you realise just how foolish the UK looks?
Ukip Douglas Carswell defection: Tory MP jumps ship to join Nigel Farage
- < Previous
- Next >
iJobs Money & Business
£50000 - £80000 per annum + benefits+bonus+package: Harrington Starr: Data Sci...
£450 - £500 per day: Orgtel: SAS Business Analyst, London, Banking, Credit Ris...
£32000 - £38000 Per Annum Bonus, Life Insurance + Other Benefits: Clearwater P...
£200 - £250 per day + competitive: Orgtel: KYC Analyst, Key Banking Client, Bi...