This Day On The Street
Continue to site
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

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

New York (TheStreet) -- Time Warner Cable (TWC - Get Report)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 - Get Report)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.

Must Read: The Deal: Searching for the Next Michael Kors at Fashion Week

"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

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

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
Stocks Under $10

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

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

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
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
DUK $78.83 -0.14%
TWC $212.81 -1.00%
AAPL $95.18 1.64%
FB $117.44 -0.95%
GOOG $692.33 -0.84%


Chart of I:DJI
DOW 17,750.91 -140.25 -0.78%
S&P 500 2,063.37 -18.06 -0.87%
NASDAQ 4,763.2240 -54.37 -1.13%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs