Comcast to unload some systems, take stake in Bresnan
Bresnan Broadband Holdings LLC said it will buy non-urban systems serving 317,000 basic subs in Montana, Wyoming, Colorado and Utah from Comcast Corp. for roughly $525 million in cash, plus an undisclosed stake in Bresnan. The deal is expected to close by March 31.
In addition to Comcast, Bresnan's equity owners include lead investor Providence Equity Partners, and Quadrangle Group, TD Capital Communications Partners and Bresnan management. Bresnan Communications will manage the company.
The purchase involves 197 communities, including systems serving the following cities: Billings, Bozeman, Helena, Great Falls, Kalispell and Missoula, Mont.; Cheyenne, Casper, Laramie and Jackson, Wyo.; and Grand Junction, Canon City and Durango, Colo.
Bresnan said it plans to upgrade those systems and launch advanced services via a capital investment plan. Bresnan was not specific in saying what types of advanced services will be offered in those markets once upgrades are complete.
The deal with Comcast will further solidify Bresnan's presence in the region. In April of 2002, Bresnan inked a deal with AT&T Broadband (now part of Comcast) to buy systems serving about 320,000 cable subs in Montana, Wyoming and Colorado, for $735 million.