Time Warner Cable Buys DukeNet for $600 Million | Adweek Time Warner Cable Buys DukeNet for $600 Million | Adweek
Advertisement
Sticker

Time Warner Cable Buys DukeNet for $600 Million

Local fiber optic network sold in cash deal

The Time Warner Cable headquarters in New York. | Photo: Getty Images

It's been true for a while now that new cable subscribers are fairly thin on the ground—Time Warner Cable has picked an innovative way to make up the shortfall today by purchasing in a $600 million cash deal the North Carolina fiber optic cable network DukeNet. Based in North Carolina, the network also serves South Carolina and five other states in the Southeast.

New fiber-optic services laying cable in territory staked out by big cable conglomerates like TWC and Cablevision is one a major concern for those larger businesses. By acquiring smaller companies like DukeNet, TWC can stave off competition and bring in new revenue streams. The company has been considering all available options, notably bargaining hard against retrans fees and cutting service perks.

“Business services is a key growth area for Time Warner Cable and this acquisition will greatly enhance our already growing fiber network to better serve customers, particularly those in key markets in the Carolinas,” said Phil Meeks, evp and COO of business services for TWC. “This acquisition will help us expand our fiber footprint at a price that is consistent with our disciplined approach to M&A, accounting for expected synergies and tax benefits.”

The transaction will close in Q1 of 2014, provided regulators approve. DukeNet specializes in business Internet, so if you own a business or work for the government in the company's coverage area (and you need fiber optic web), expect to see some major changes in the near future.

Advertisement