Charter Communications CEO, Tom Rutledge recently made an announcement to the effect that the company is ready to purchase a series of Cablevision’s cable solutions located in the Rocky Mountain states. These systems have been under the direction of Rutledge while he was working for the Long Island company as COO. Between leaving Cablevision during 2011 and joining Charter Internet company, Rutledge kept his eye on what he terms as ‘some of the fastest developing cable assets in US’. With news about a potential investment of the cable systems in Montana, Utah, Wyoming and Colorado leaking out, the shares of Cablevision shot up last week by 5.6% while Charter Communication stock prices declined by a marginal 0.5%.
In a recent press release by Charter Communications and Cablevision Systems it was announced that the two companies have entered in to a definite agreement to acquire the Bresnan Broadband Holdings operated by Cablevision for a sum of $1.625 billion paid in cash. The company which is also known as Optimum West has been managing the cable operating systems in the above mentioned areas with coverage over 660,000 homes, serving 304,000 video subscribers and handling more than 366,000 customer relationships.
CEO Tom Rutledge said, ‘With this transaction our company will acquire cable assets with the fastest growth in the United State. The former Bresnand owned properties have been operating in some of the growing communities. Their employees, customer base and network have been very well served for the past years. Especially, during the past two years the Optimum West company has grown its Internet, telephone and video customer base by executing a service and product strategy similar to that was implemented at Charter’. He also expressed confidence that the Optimum West Team under the new management would continue in building on the success they have already accomplished. The transaction is expected to be concluded with regulatory approval by the third quarter this year.