FCC Clears TWC to Take Over Insight2/06/2012 12:01 AM Eastern
Washington — The Federal Communications
Commission has approved
Time Warner Cable’s purchase of Insight
TWC last August agreed to buy Insight
for $3 billion in cash.
TWC will acquire
control of Insight by merging Insight
into Derby Merger Sub Inc., a whollyowned
subsidiary of TWC, with Insight
as the surviving entity, the FCC said. Insight
will become a wholly-owned subsidiary
“We have analyzed the potential
harms and benefits of the proposed
transaction,” the FCC said. “On balance,
we find that the potential public interest
benefits, taken as a whole, outweigh the
potential public-interest harms.”
That approval also meant granting a
waiver of the commission’s prohibition
on cable operators from buying local
phone companies that provide service
in their cable franchise areas.
The FCC said that there was limited
overlap of those services and pointed
out that nobody had opposed the transaction.
“We conclude that, overall, approval
of the applications will serve the
public interest, convenience, and necessity,
and hereby grant the applications,”
the heads of FCC’s the wireless
and wireline competition bureas said
in granting the purchase.
The deal boosts TWC’s Midwestern
presence, adding more than 750,000
subs in Indiana, Kentucky and Ohio.
Insight is owned by The Carlyle Group,
Crestview Partners, MidOcean Partners,
members of Insight management
and others. Carlyle and Insight
management took the company private
in December 2005, and Crestview
and Mid Ocean purchased a signifi cant
stake in the company in April 2010.
Mike Reynolds contributed to this