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Parsons Confirms TWC Wants to Buy All of Adelphia

Feb 4, 2005  •  Post A Comment

Time Warner Chairman and CEO Richard Parsons on Friday confirmed that the media giant is vying for Adelphia Communications, saying a deal would give the company a chance to increase its cable footprint and give a boost to a business he said the company likes.

“We are in the hunt for Adelphia,” Mr. Parsons said to analysts during a discussion of the company’s 2004 financial results. “We are looking for opportunities to add something to our portfolio that will be accretive. We believe Adelphia is one of those opportunities.”

Time Warner and Comcast Corp. together are one of two buyers looking to buy the entire company. On Jan. 31 they submitted a bid for all of Adelphia Communications. The other bidder for the whole company is a private-equity partnership made up of Kohlberg Kravis Roberts & Co. and Providence Equity Partners. Several other bidders are vying for only pieces of Adelphia, which has around 5.3 million subscribers.

Mr. Parson’s confirmation came as Time Warner reported a 31 percent surge in 2004 profit to $3.4 billion, on a 6 percent rise in revenue to $42.1 billion. For the fourth quarter, Time Warner posted a 72 percent jump in profit to $1.1 billion, on a 2 percent increase in revenue to $11.1 billion.

Much of the company’s growth was driven by gains at Time Warner’s cable, networks and filmed-entertainment divisions. Time Warner Cable revenue rose 10 percent in 2004 to $8.5 billion, driven by subscriber growth in digital cable, high-speed data and digital-video recorders. The networks division, meanwhile, reported a 7 percent increase in revenue to $9.1 billion for the year, lifted by advertising and subscription revenues.