Cox Communications and Tele-Communications Announce Historic Cable Deal

Strategic Insights -

Cox Communications, Inc., and Tele-Communications, Inc. (TCI) have announced a significant cable television system trade, with the two companies set to exchange approximately 600,000 customers in a deal that solidifies their presence in key markets across the United States. The transaction, which is expected to close in mid-1996 pending regulatory approvals, marks a major step forward for both companies in their drive to strengthen their positions in the competitive broadband marketplace.

Key Takeaways:

  • The deal involves the exchange of approximately 600,000 customers between Cox and TCI, with each company gaining new customers in areas that are contiguous or advantageous to their existing operations.
  • The properties being traded are in the greater Pittsburgh area; Spokane, Wash.; Springfield, Ill; Cedar Rapids, Iowa, and the Quad Cities area of Illinois and Iowa; and Saginaw, Mich. (TCI) and Bellevue/LaVista, Neb., and Council Bluffs, Iowa; Chesapeake, Va; Scottsdale, Ariz; North Attleboro/Taunton, Mass; Lincoln, R.I; and St. Bernard, La. (Cox).
  • Cox will receive TCI systems serving around 300,000 customers, while TCI will receive Cox systems serving approximately 300,000 customers.
  • The deal is a major step forward in the companies' strategies to enhance their portfolios and positions in the broadband marketplace.
  • Cox will gain critical mass in key markets, including the greater Pittsburgh area and the Quad Cities region of Illinois and Iowa.
  • TCI will further its strategy of increasing its presence in key markets and developing regional clusters of systems.
  • The transaction is expected to close in mid-1996, pending legal and regulatory approvals.

Statistics:

  • 600,000 customers are expected to be exchanged between Cox and TCI as part of the deal.
  • The properties traded are located in contiguous or advantageous areas to the companies' existing operations.
  • Cox Communications, Inc. serves 3.2 million customers, making it the nation's fourth largest multiple system operator.
  • The deal solidifies both companies' positions in the competitive broadband marketplace and strengthens their ability to provide a wide variety of telecommunications services to their customers.

Sources:

  • Business Wire, September 11, 1995
  • Cox Communications, Inc. press release
  • Tele-Communications, Inc. press release