Comcast and Time Warner reportedly neared an $18 billion deal for bankrupt Adephia, the fifth largest U.S. cable operator. Adelphia serves customers in 31 states and Puerto Rico, serving more than 5 million customers, including in the Los Angeles area, where it is the largest cable operator.
A deal might give Comcast a way to unwind its 21% stake in Time Warner. Comcast would get more subscribers in exchange for the shares. Time Warner would also grow its subscriber base. A deal would require the permission of the bankruptcy court.
New York-based Cablevision had been seen as another potential suitor.
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- In May 2002, following allegations of financial wrong-doing, founder and CEO John Rigas and CFO Timothy Rigas resigned from the company and its Board of Directors. They were subsequently indicted. Adelphia filed for bankruptcy protection the following month.