Sammons Communications Inc. Completes Exit from Cable Television Business

Sammons Communications Inc. has finalized its exit from the cable television industry by selling its remaining cable systems, serving 440,000 subscribers, to Tele-Communications Inc. for $800 million. The transaction marks a major consolidation in the industry, with Sammons joining a growing list of small and mid-sized cable companies selling their systems to giant operators like Tele-Communications and Time Warner. The sale includes the assets of Sammons' cable systems, which are being divided between Lenfest Group and TKR Cable, a joint venture of Knight-Ridder Inc. and Tele-Communications.

Key Takeaways:

• The sale of Sammons' cable systems to Tele-Communications Inc. is the latest example of consolidation in the cable television industry, with giant operators seeking to acquire densely clustered cable systems.
• The transaction price of $800 million translates to $1,820 per subscriber, significantly higher than the $1,520 per subscriber paid in a previous sale.
• The Lenfest Group will acquire approximately 293,000 subscribers in eastern and central Pennsylvania, while TKR Cable will acquire around 147,000 subscribers in central and northern New Jersey.
• Sammons Communications Inc. has been controlled by the Sammons family since its founding by Charles Sammons, who died in 1988. The company's assets were placed into a family trust, which is now selling the cable portion of the portfolio.

Statistics:

• 440,000: Number of subscribers in Sammons' remaining cable systems.
• $800 million: Transaction price of the sale to Tele-Communications Inc.
• $1,820: Per-subscriber price paid in the transaction.
• 293,000: Number of subscribers acquired by the Lenfest Group.
• 147,000: Number of subscribers acquired by TKR Cable.

Sources:

• Hawks, John. "Hawks in the News with Hawks Dealings Billionaire." Los Angeles Times, 1989.
• Schlichting, LaRae. Interview.