Time Warner Keeps Small Systems

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Time Warner Cable changed its mind about selling several systems counting
100,000 subscribers in Florida, Kansas and Missouri.

Hoping to drop some of its small-market clusters, Time Warner put the systems
on the block in September.

The bulk of the subscribers are in two clusters in Independence, Emporia and
Chanute, Kan.

The systems were valued at up to $3,000 per subscriber, and some observers
speculated that Mediacom Communications Corp. was interested but the price was
too high.

Time Warner spokesman Mike Luftman said the MSO decided to keep the systems
for 'business reasons.'

Time Warner's decision to hold onto the small-market properties comes at a
time when parent AOL Time Warner Inc. and the Newhouse family are reworking
their Time Warner Entertainment-Advance/Newhouse partnership in a deal that
could see Time Warner end up with 2 million fewer subscribers.

The partnership counts 6.7 million subscribers, of which the Newhouse family
owns 33 percent.

Wall Street speculation has the Newhouses unwinding the partnership, taking
its 2.1 million subscribers and selling them to Cox Communications Inc. or
another bidder.

Cox, Advance/Newhouse and Time Warner declined comment.

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