Adelphia: Cablevision vs Time Warner
Mar 30, 2005 | 7:27 pm
#1
Original Poster
In Memoriam, Original Member
Join Date: May 1998
Location: Los Angeles, CA
Posts: 6,879
Adelphia: Cablevision vs Time Warner
Ok. KKR is rarely dumb in the investments they make (leave RJR out of this!). Can someone explain the logic behind the KKR/Providence/Cablevison bid for Adelphia?
Ok this does not make sense...
"But Dolan may be interested in Adelphia in part because he has been outmaneuvered by his larger cable rivals. For instance, by striking a joint venture last year with Chicago's four major professional sports teams, Comcast the largest cable carrier in that city decimated the value of Cablevision's local sports network, which previously aired the teams' games."
If you consider...
"It would be unlikely that the private equity partners would allow the Dolans to have the type of super-voting power they currently have," said Richard Greenfield, an analyst at Fulcrum Global Partners.
What's more, although an acquisition of Adelphia would triple Cablevision's size, analysts said the combined companies would continue to lack the leverage needed to extract programming discounts or protect its entertainment assets.
Analysts also doubt that Cablevision and its financial partners could outbid Time Warner and Comcast because Cablevision would enjoy far fewer cost savings from a marriage with Adelphia. Unlike Time Warner and Comcast, Cablevision has fewer systems that are contiguous with Adelphia's, reducing the possible operating efficiencies from a union."
What is KKR thinking? Why does the deal even make sense to them?
Ok this does not make sense...
"But Dolan may be interested in Adelphia in part because he has been outmaneuvered by his larger cable rivals. For instance, by striking a joint venture last year with Chicago's four major professional sports teams, Comcast the largest cable carrier in that city decimated the value of Cablevision's local sports network, which previously aired the teams' games."
If you consider...
"It would be unlikely that the private equity partners would allow the Dolans to have the type of super-voting power they currently have," said Richard Greenfield, an analyst at Fulcrum Global Partners.
What's more, although an acquisition of Adelphia would triple Cablevision's size, analysts said the combined companies would continue to lack the leverage needed to extract programming discounts or protect its entertainment assets.
Analysts also doubt that Cablevision and its financial partners could outbid Time Warner and Comcast because Cablevision would enjoy far fewer cost savings from a marriage with Adelphia. Unlike Time Warner and Comcast, Cablevision has fewer systems that are contiguous with Adelphia's, reducing the possible operating efficiencies from a union."
What is KKR thinking? Why does the deal even make sense to them?
Mar 30, 2005 | 7:32 pm
#2
Join Date: Apr 2003
Location: Southwest CT
Programs: DL Diamond and Million Miler, Marriott Titanium Elite, Hertz Pres Circle
Posts: 7,618
Originally Posted by auh2o
Ok. KKR is rarely dumb in the investments they make (leave RJR out of this!). Can someone explain the logic behind the KKR/Providence/Cablevison bid for Adelphia?
Ok this does not make sense...
"But Dolan may be interested in Adelphia in part because he has been outmaneuvered by his larger cable rivals. For instance, by striking a joint venture last year with Chicago's four major professional sports teams, Comcast ? the largest cable carrier in that city ? decimated the value of Cablevision's local sports network, which previously aired the teams' games."
If you consider...
"It would be unlikely that the private equity partners would allow the Dolans to have the type of super-voting power they currently have," said Richard Greenfield, an analyst at Fulcrum Global Partners.
What's more, although an acquisition of Adelphia would triple Cablevision's size, analysts said the combined companies would continue to lack the leverage needed to extract programming discounts or protect its entertainment assets.
Analysts also doubt that Cablevision and its financial partners could outbid Time Warner and Comcast because Cablevision would enjoy far fewer cost savings from a marriage with Adelphia. Unlike Time Warner and Comcast, Cablevision has fewer systems that are contiguous with Adelphia's, reducing the possible operating efficiencies from a union."
What is KKR thinking? Why does the deal even make sense to them?
Ok this does not make sense...
"But Dolan may be interested in Adelphia in part because he has been outmaneuvered by his larger cable rivals. For instance, by striking a joint venture last year with Chicago's four major professional sports teams, Comcast ? the largest cable carrier in that city ? decimated the value of Cablevision's local sports network, which previously aired the teams' games."
If you consider...
"It would be unlikely that the private equity partners would allow the Dolans to have the type of super-voting power they currently have," said Richard Greenfield, an analyst at Fulcrum Global Partners.
What's more, although an acquisition of Adelphia would triple Cablevision's size, analysts said the combined companies would continue to lack the leverage needed to extract programming discounts or protect its entertainment assets.
Analysts also doubt that Cablevision and its financial partners could outbid Time Warner and Comcast because Cablevision would enjoy far fewer cost savings from a marriage with Adelphia. Unlike Time Warner and Comcast, Cablevision has fewer systems that are contiguous with Adelphia's, reducing the possible operating efficiencies from a union."
What is KKR thinking? Why does the deal even make sense to them?