Last days of Adelphia


Adelphia Commnications, was not part of the Broadbandits saga. It could easily have been. Nevertheless it is still a cautionary tale of corporate excesses. And from this morning’s reports, it is coming to an end. Time Warner and Comcast are teaming up to jointly bid for the assets of the bankrupt cable operator. It is a remarkably grown up approach bother companies are taking, for getting into a pissing match would only hyper inflate the price of Adelphia. Clearly both companies cannot afford to over pay for Adelphia. The joint bid would let companies pick and choose territories. For instance, Comcast could get the LA region, while Time Warner could get the New York region and so on. ( The two companies also announced that they have entered into an agreement that gives CMCSA the option to decrease its stake in Time Warner Cable to 17% from 21% in exchange for 90,000 Time Warner basic cable subscribers and $750 million in cash. Finally, in concert with the CMCSA option discussed above, a joint bid would enable CMCSA to begin to exit its passive stake in Time Warner Cable.



i think since this is such a huge deal, one expects that there will be a lot of scruitny of this one. however, i think since it is in bankruptcy, the creditors and courts decide what is the right price and the whole process is more credible. no one is going to walk away with a bargain, but they won’t overpay either. as for the creditors: lazy bastards were loaning money to crooks. they should suffer

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