Blog Post

BigBand Booms for Time Warner Cable

Stay on Top of Enterprise Technology Trends

Get updates impacting your industry from our GigaOm Research Community
Join the Community!

Guess who is really popping the champagne?

Time Warner Cable (TWCA), who just got a windfall last week when BigBand Networks (BBND), a Redwood City, Calif.-based cable broadband equipment provider completed its initial public offering and started trading at $13 a share. (The company raised about $140 million by selling over 10 million shares.)

Time Warner Cable, thanks to its status as the second largest cable company and a key customer of BigBand (about 10% of BigBand’s revenues), got some stock in exchange for an early bet on company’s gear. It sold about 360,000 shares as part of the offering. At $13-a-share, that works out to about $4.7 million.

Before the IPO, Time Warner Cable had about 2.05 million shares in BigBand, worth about $26.5 million (at IPO price.) They still have about 1.68 million shares left over – worth about $28 million based on Friday’s closing price of $16.66 a share. Time Warner Cable became a public company on February 13th this year.

BigBand was also an exit for BigBand investors Redpoint Ventures, Charles River Ventures and Pilot House among others.