Cable Technology Feature Article
Crestview and MidOcean Purchase Equity in Insight
By Raju Shanbhag, TMCnet Contributor
Insight Communications Company has announced that Crestview Partners and MidOcean Partners have purchased a considerable equity position in Insight from existing shareholders, including The Carlyle Group.
The company is the ninth largest cable operator in the United States and is also a full service telecommunications company providing phone, high-speed Internet and video services to more than 750,000 customers in the Midwest. The majority of company's customers are in Kentucky.
Carlyle and the new investor group each will hold an approximate 42 percent equity interest in Insight at the conclusion of this transaction and the related share repurchases by Insight. The company's management, employees and certain other shareholders will be continuing to hold the remaining equity interests. Crestview and MidOcean have a successful history of partnering together in the cable sector.
Michael Willner, Insight's chief executive officer said, "The investment by Crestview and MidOcean reflects a validation of our strategy for growth. Insight is a robust, healthy company in a dynamic industry. The addition of Crestview's Jeff Marcus, a hugely successful cable entrepreneur, and MidOcean's Tyler Zachem will bring new perspectives to our board as we position ourselves for a competitive and vibrant future."
Both Crestview and MidOcean have jointly acquired OneLink (News - Alert) Communications, a telecommunications company based in San Juan, Puerto Rico, in 2005. In a going-private merger, Carlyle and company management acquired Insight in December 2005. Insight Communications is certain that related holders and its CEO Michael S. Willner will continue to hold a series of shares enabling them to elect a majority of Insight's board of directors.
In March 2008, the company introduced Insight Digital 3.2, an upgraded digital service that comes less than three months after the launch of its predecessor Insight Digital 3.0. The company has upgraded its digital customers enabling them to immediately receive an enhanced digital music service as well as added free HD movies from several popular networks to their Video On Demand service.
Raju Shanbhag is a contributing editor for TMCnet. To read more of Raju's articles, please visit his columnist page.
Edited by Alice Straight