Time Warner Cable, the nation’s second largest cable operator, will soon get a little bit larger, announcing today that it has acquired Midwestern television operator Insight Communications for $3 billion.
Insight, which serves about 750,000 customers in Kentucky, Ohio, and Indiana, is the ninth-largest cable operator in the U.S. The deal, which is still subject to FCC approval, would be Time Warner Cable’s first major acquisition since it was spun off from Time Warner in 2009.
Time Warner Cable said the merger could save the company $100 million annually through programming-expense savings and other cost reductions. The company did not say how the merger would affect Insight subscribers, other than saying “Time Warner Cable and Insight will work together to provide a smooth transition for both customers and employees.” We’ll monitor the merger and report on any subscriber impact that we find.
The deal further consolidates a market that has lost subscribers recently as it faces competition for satellite and telecommunications companies. Time Warner Cable lost 130,000 subscribers during the second quarter of 2011, although the company’s revenue did increase 4.4 percent since the same time last year.
Time Warner Cable to acquire Insight Communications [Time Warner Cable]