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Time Warner Sees Adelphia Deal on Track

The big asset buy and system swap should go ahead this summer.
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Time Warner


said it expects its acquisition with


(CMCSA) - Get Free Report

of bankrupt cable operator Adelphia to close on schedule.

Adelphia agreed to the deal last April. The court overseeing the company's Chapter 11 case and regulators need to approve the $17.6 billion deal, which also involves a cable asset swap between Comcast and Time Warner Cable. 

Time Warner Chairman Dick Parsons told


Monday afternoon that there is a chance approval will fall into the third quarter, but he said he is confident the deal will meet its July 31 deadline.  

Sources close to the large media company note that cable valuations are down since the time the agreement was negotiated, so any hang-ups aren't likely to draw in better bids.  

As part of the swap, Time Warner will get Comcast's Dallas/Fort Worth cable system. Dallas is a popular satellite market with over 40% penetration. Time Warner Cable has strong cable subs in a number of other Texan cities, such as San Antonio, Waco and Austin. Entering the Dallas market would fit with Time Warner's so-called cluster strategy and allow it to sell triple-play services to more Texans.