Cox Communications Acquires Media General's Cable Operations for $1.4 Billion

Strategic Insights -

Cox Communications Inc., the sixth-largest U.S. cable television provider, has announced plans to acquire Media General Inc.'s cable operations in Fairfax County and Fredericksburg, Va., for $1.4 billion. This move comes as AT&T Corp. offers $58 billion for MediaOne, the nation's fourth-largest cable-television company, in an attempt to thwart a merger agreement between Comcast Corp. and MediaOne. The purchase of Media General's Northern Virginia operations by Atlanta-based Cox could lead to improved services for consumers, as Cox will pay almost $5,400 per cable subscriber, one of the highest rates in the industry.

Key Takeaways:

  • Cox Communications Inc. has agreed to acquire Media General Inc.'s cable operations in Fairfax County and Fredericksburg, Va., for $1.4 billion.
  • The purchase price of $5,400 per subscriber is one of the highest in the industry.
  • Media General's cable company had 260,000 customers in Fairfax County and Fredericksburg, while Cox has 450,000 customers in southeastern Virginia and Roanoke.
  • Cox will retain a channel for supplying news and information to Media General's customers.
  • Media General's 500 employees will have the opportunity to go to work for Cox.
  • Cox's acquisition of Media General's operations may lead to improved services for consumers, including high-speed Internet access and telephone.

Statistics:

  • $1.4 billion: The price at which Cox Communications Inc. is acquiring Media General Inc.'s cable operations.
  • $5,400: The per-subscriber price at which Cox is acquiring Media General's operations.
  • 260,000: The number of customers Media General had in Fairfax County and Fredericksburg.
  • 450,000: The number of customers Cox has in southeastern Virginia and Roanoke.
  • 500: The number of employees working for Media General that will have the opportunity to go to work for Cox.
  • 12.5 million: The number of cable subscribers AT&T has after completing its acquisition of Tele-Communications Inc. last month.
  • 5 million: The number of cable subscribers MediaOne has.
  • 12.6 million: The number of cable subscribers Time Warner has.

Sources:

  • Cox Communications Inc.
  • Media General Inc.
  • AT&T Corp.
  • Comcast Corp.
  • MediaOne.
  • Paul Kagan Associates.
  • The article cites wire service reports for additional information.