This Day On The Street
Continue to site right-arrow
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

The Deal: Time Warner Cable Buys DukeNet in Play for Broadband Customers

Stocks in this article: TWC DUK

New York (TheStreet) -- Time Warner Cable (TWC)said Monday it would pay $600 million for fiber network operator DukeNet Communications LLC, the latest example of a cable operator buying market share in the business telecom market.

Owned by Duke Energy (DUK)and Alinda Capital Partners LLC, DukeNet provides services to wireless telecoms, data center operators and corporate and government clients in the Southeast.Greenwich, Conn., private equity firm Alinda paid $137 million for a 50% stake in DukeNet in 2010.

The Daily Deal reported in May that Duke and Alinda were shopping the company. At the time, sources expected the company to fetch $450 million to $500 million. PE-backed fiber operator Zayo Group LLC was thought to be as suitor.

As growth has slowed in the residential market, cable operators have targeted the business market. Time Warner Cable purchased hosting and cloud services provider NaviSite Inc. for $230 million in 2011.

"The returns are very visible to us," Minson said of commercial services, "and it's a place that we are excited to be investing money."

Fellow pay-TV company Cox Communications Inc. said it would buy Oklahoma fiber networker EasyTel Communications Inc. in September. Bright House Networks LLC, which is a portfolio company of Time Warner Cable and Condé Nast publisher Advance Publications Inc., acquired Florida-based cloud services company Televations Inc.

Comcast (CMCSA)has picked up Chicago carrier Cimco Communications Inc. and New Global Telecom Inc., of Golden, Colo. David Parker, Shariar Mohajer and Rachel Stack of RBC Capital Markets LLC ran the process for Duke and Alinda, which retained a team including Steve Hope and Rob Rust from Moore & Van Allen PLLC as counsel.

Peter Barrett, Jeffry Hardin, Kate Price, Karl Fryzel and Katie Day of Edwards Wildman Palmer LLP advised Time Warner Cable.

The parties expect to close the deal in the first quarter of 2014.

--By Chris Nolter in New York

Select the service that is right for you!

Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • 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 Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!


DOW 18,030.21 +6.04 0.03%
S&P 500 2,081.88 -0.29 -0.01%
NASDAQ 4,773.4720 +8.0480 0.17%

Brokerage Partners

Rates from

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs