NEW YORK: Time Warner is to offer private investors shares in its cable unit, equating to 16% of the company. TW Cable, the second biggest provider in the US after Comcast, says in a SEC filing that it believes the shares will be worth $5.5 billion (€4.37bn; £2.94bn).
The IPO cash will be used to pay shareholders in Adelphia, the bankrupt cable provider acquired by TW and Comcast in a joint venture earlier this year [WARC News: 17-Jul-06].
TW Cable had sales of $9.5bn last year and, as of June 30, the company's total capitalization was $29.42bn.
It claims 13.5 million basic cable subscribers and is now the largest provider in New York and Los Angeles, the country's biggest cities and media markets.
It also lays claims to 1.4m phone customers and 4.6m broadband subscribers as at the end of June.
Data sourced from New York Times; additional content by WARC staff