Cablevision's $1.36 billion deal for Western cable specialist Bresnan translates to a whopping $4,266 per subscriber.
In an effort to appease peeved shareholders, the Bethpage, N.Y. cable shop said Monday that it plans to launch a $500 million share buyback.
Investors eyeing the Cablevision/Bresnan deal have taken a new look at Mediacom. Mediacom's board is currently evaluating a $6 per share offer from its CEO Rocco Commisso, who already holds 40% of the outstanding shares -- and 81% of the voting power for the company.Given the value Cablevision bestowed on Bresnan, Commisso's $6 per share bid appears cheap. Wall Street seems to think so also. Mediacom shares have risen 11% since Commisso's June 1 take-private buyout offer. Mediacom shares rose to $7.01 in early trading Monday. Per subscriber valuations are nothing more than rough calculations, but this one is a little rough on Commisso's offer. The $6 a share take private bid values Mediacom at $3,325 per sub. With a new level of cable valuation, courtesy of Cablevision, investors see some upside in Mediacom. --Written by Scott Moritz in New York.
Select the service that is right for you!COMPARE ALL SERVICES
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
- Real Money + Doug Kass + 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV