Charter Communications is close to finalizing a deal for Cablevision Systems’ Optimum West cable systems in Colorado, Montana, Wyoming and Utah, sources in the cable financial community confirmed Thursday..
Charter, the fifth largest MSO in the country with about 5 million customers, beat out bids from Time Warner Cable, Suddenlink Communications and private equity group TPG Partners. Optimum West has about 300,000 subscribers.
The sale was first reported by Bloomberg News. Sources in the cable industry confirmed the report, adding that a deal could be announced later today.
While no official price has been released yet, sources said Charter likely will pay north of $1.6 billion for the systems, or about 8.5 times forward looking cash flow.
Cablevision Systems purchased the former Bresnan systems in 2010 for about $1.4 billion, renaming the operation Optimum West in May of 2011. With about 300,000 customers in Montana, Utah, Colorado and Wyoming, Cablevision put the properties up for sale later in 2012 after it received several inquiries from outside parties.