Time Warner Cable buys Drop-down cable assets

Beijing time June 14 Morning news, Time Warner Cable (TWC) announced in Tuesday, has agreed to buy from Drop-down communications for about 70,000 video users services of the cable system, the transaction price of 260 million U.S. dollars in cash.　　The deal also includes 42,000 high-speed data users and 26,000 telephone users in western Kentucky State and Tennessee State.　　The acquisition is subject to regulatory approval and is expected to be completed in the fourth quarter of this year.　　Rob Marcus, Time Warner Cable's chief operating officer, said the deal would allow the company to expand its footprint at favorable prices.　　Michael McCormack, an analyst with Nomura Securities, said the deal was valued at $3700 for each drop-down video user, above the implied value of $3500 trillion per video user of Time Warner Cable. He said it was a good sign that the company had not acquired assets at exorbitant prices. He also said Time Warner Cable has a neighboring wired system that is being acquired and that the combined operations of these systems are expected to produce cost synergies. Humble)