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Cablevision May Join Bid for Adelphia

Mar 29, 2005  •  Post A Comment

Cablevision Systems is said to be close to joining two private-equity firms in submitting an offer to purchase bankrupt cable operator Adelphia Communications, potentially unseating a joint bid from Comcast Corp. and Time Warner that has widely been seen as the offer to beat.

According to an article in Tuesday’s New York Times, Cablevision is in “advanced talks” to contribute its cable systems to a new public company that would be created by the private-equity firms Kohlberg Kravis Roberts & Co. and Providence Equity Partners. The value of the bid could be higher than the nearly $18 billion offer submitted by the Comcast-Time Warner partnership.

A Cablevision spokesman declined to comment on the story.

The emergence of Cablevision as a potential partner with KKR and Providence throws a wrench in what largely had been regarded as an auction all but sewn up by the Comcast-Time Warner team.

However, a number of analysts were discounting the New York Times article, noting that Cablevision lacks the clustering and synergy opportunities that have motivated Comcast and Time Warner to go after Adelphia and its 5.3 million subscribers.