Warner in new cable deal

In a dramatic manoeuvre to become the largest cable provider in the US, Time Warner yesterday announced that it was acquiring Cablevision Industries in a buyout deal worth about $2.5bn (£1.5bn).

The move is part of a wider effort by the New York-based media giant to reorganise its cable and broadcast businesses. It is also shedding some non-core interests in its efforts to boost earnings.

In a surprise announcement last week, Time Warner revealed it was withdrawing from a bid for the franchise for the future Channel 5 in Britain, which should start broadcasting within two years.

Cablevision, based in Liberty, New York, will provide Time Warner with about 1.3 million extra subscribers, increasing the group's total reach to about 11.5 million in the US. That would put it past the 11 million households currently boasted by rival Tele-Communications.

Gerald Levin, Time Warner's chairman, said: "With this merger, we've enhanced our position as the best-clustered cable system in the world."

Last month, the group announced a similarly costly deal to purchase Kblcom, based in Houston, Texas for $2.2bn.

With its reorganisation complete, Time Warner should have its cable operations concentrated in several high-population regions that should attract advertisers. They include the New York area, Florida and the San Fernando Valley in California.

The company also announced yesterday improved fourth-quarter earnings, up 9 per cent over the previous year before interest payments and taxes. Earnings were up 5 per cent for all of 1994, even though there was a net loss for the year.

Net income at the company, which is the world's largestmedia group, was only $12m for the last quarter, compared, however, with $5m in the same quarter in 1993.

Its net losses last year reached $91m, also an improvement over losses of $221m the year before.

Until last week, Time Warner, had been considered a keen bidder for Channel 5, as part of consortium led by MAI, the media and financial services group, and Pearson.

The company is thought to have been discouraged by difficulties connected with the putative channel, including a decision by the Government to reallocate its promised broadcast frequencies.

Start your day with The Independent, sign up for daily news emails
PROMOTED VIDEO
ebooks
ebooksA special investigation by Andy McSmith
Latest stories from i100
Have you tried new the Independent Digital Edition apps?
Independent Dating
and  

By clicking 'Search' you
are agreeing to our
Terms of Use.

iJobs Job Widget
iJobs Money & Business

Recruitment Genius: Software Development Manager

£40000 - £50000 per annum: Recruitment Genius: This is an exciting opportunity...

Ashdown Group: Product Manager - (Product Marketing, Financial Services)

£30000 - £35000 per annum + Benefits: Ashdown Group: Marketing Manager - Marke...

Recruitment Genius: Compliance Assistant

£13000 per annum: Recruitment Genius: This Pension Specialist was established ...

Ashdown Group: Market Research Executive

£23000 - £26000 per annum + Benefits: Ashdown Group: Market Research Executive...

Day In a Page

Isis hostage crisis: The prisoner swap has only one purpose for the militants - recognition its Islamic State exists and that foreign nations acknowledge its power

Isis hostage crisis

The prisoner swap has only one purpose for the militants - recognition its Islamic State exists and that foreign nations acknowledge its power, says Robert Fisk
Missing salvage expert who found $50m of sunken treasure before disappearing, tracked down at last

The runaway buccaneers and the ship full of gold

Salvage expert Tommy Thompson found sunken treasure worth millions. Then he vanished... until now
Homeless Veterans appeal: ‘If you’re hard on the world you are hard on yourself’

Homeless Veterans appeal: ‘If you’re hard on the world you are hard on yourself’

Maverick artist Grayson Perry backs our campaign
Assisted Dying Bill: I want to be able to decide about my own death - I want to have control of my life

Assisted Dying Bill: 'I want control of my life'

This week the Assisted Dying Bill is debated in the Lords. Virginia Ironside, who has already made plans for her own self-deliverance, argues that it's time we allowed people a humane, compassionate death
Move over, kale - cabbage is the new rising star

Cabbage is king again

Sophie Morris banishes thoughts of soggy school dinners and turns over a new leaf
11 best winter skin treats

Give your moisturiser a helping hand: 11 best winter skin treats

Get an extra boost of nourishment from one of these hard-working products
Paul Scholes column: The more Jose Mourinho attempts to influence match officials, the more they are likely to ignore him

Paul Scholes column

The more Jose Mourinho attempts to influence match officials, the more they are likely to ignore him
Frank Warren column: No cigar, but pots of money: here come the Cubans

Frank Warren's Ringside

No cigar, but pots of money: here come the Cubans
Isis hostage crisis: Militant group stands strong as its numerous enemies fail to find a common plan to defeat it

Isis stands strong as its numerous enemies fail to find a common plan to defeat it

The jihadis are being squeezed militarily and economically, but there is no sign of an implosion, says Patrick Cockburn
Virtual reality thrusts viewers into the frontline of global events - and puts film-goers at the heart of the action

Virtual reality: Seeing is believing

Virtual reality thrusts viewers into the frontline of global events - and puts film-goers at the heart of the action
Homeless Veterans appeal: MP says Coalition ‘not doing enough’

Homeless Veterans appeal

MP says Coalition ‘not doing enough’ to help
Larry David, Steve Coogan and other comedians share stories of depression in new documentary

Comedians share stories of depression

The director of the new documentary, Kevin Pollak, tells Jessica Barrett how he got them to talk
Has The Archers lost the plot with it's spicy storylines?

Has The Archers lost the plot?

A growing number of listeners are voicing their discontent over the rural soap's spicy storylines; so loudly that even the BBC's director-general seems worried, says Simon Kelner
English Heritage adds 14 post-war office buildings to its protected lists

14 office buildings added to protected lists

Christopher Beanland explores the underrated appeal of these palaces of pen-pushing
Human skull discovery in Israel proves humans lived side-by-side with Neanderthals

Human skull discovery in Israel proves humans lived side-by-side with Neanderthals

Scientists unearthed the cranial fragments from Manot Cave in West Galilee