Comcast to Pay $775 Million for Remaining Susquehanna Cable Assets

Oct 31, 2005  •  Post A Comment

Comcast said Monday that it will pay $775 million to acquire the 70 percent of Susquehanna Communication’s cable operation that it doesn’t already own.

The transaction is part of Susquehanna’s plan to sell all of its assets. In addition to the cable deal with Comcast, Susquehanna announced Monday it has agreed to sell its radio division to an investment group led by Cumulus Media and three private equity firms for $1.2 billion.

The Comcast deal involves 225,000 basic cable subscribers who are located mainly in Pennsylvania, New York, Maine and Mississippi, close to markets where Comcast already has a presence. Analysts noted that given Comcast’s plan to acquire cable systems from Adelphia Communications, Comcast will have a virtual lock on that state’s cable market.

Comcast expects the deal to close in the first half of 2006.

Comcast said that after tax benefits, the company’s total outlay will be $440 million. What’s more, Comcast isn’t likely to have to spend much on capital improvements on the new systems, as the Susquehanna systems are already upgraded.