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.