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Charter to buy Optimum West in $1.63 billion deal
News Record staff and wire reports
Posted 2/8/13
NEW YORK — Charter Communications says it is buying cable company Optimum West from CableVision Systems Corp. for about $1.63 billion in cash.
Optimum West manages cable systems in Colorado, Montana, Wyoming, and Utah, with 304,000 video subscribers. Charter says the business is experiencing quick growth in video, Internet, and phone customers.
Optimum acquired Bresnan Communications in December 2010.
Charter, based in Stamford, Conn., says it has $1.5 billion in committed bank financing for the deal. The remaining costs will be paid with cash on hand and borrowing from its revolving credit facility. Charter expects the sale to close in the third quarter.
Cablevision corporate headquarters is in Bethpage, N.Y.
Charter shares rose 38 cents to $81.01 in after-hours trading. Cablevision lost 11 cents to $15.06, after rising 5.6 percent during the day.
Charter Communications had not returned calls as of press time.
The prices on the Optimum website for a basic phone, cable and Internet package were similar to those listed at Charter. An optimum “triple play,” which includes phone service, cable and Internet costs $89.85 a year combined, compared to a similar bundle from Charter, which would cost consumers $89.97 a month for a 12-month period.