Comcast picks up SusCom
In SusCom, Comcast will add cable properties that serve 225,000 basic subs in parts of Pennsylvania, New York, Maine and Mississippi. SusCom has also been known for its penchant to try out new technologies, including interactive television (iTV), well before its larger MSO colleagues jumped in.
Sanford C. Bernstein & Co. VP and Senior Analyst Craig Moffett, in a research note, viewed the deal as a positive for the nation's largest MSO, noting that Comcast is obtaining systems that reportedly are 100 percent upgraded, "and therefore shouldn't add materially to capital investment."
He also pointed to the geographic significance of the deal. "When taken in combination with the Adelphia acquisition, the Susquehanna systems will allow Comcast to consolidate virtually the entire state of Pennsylvania," Moffett wrote.
"These cable systems have been well run and are very complimentary to Comcast's service areas," said Comcast Chairman & CEO Brian Roberts, in a release. He noted that Comcast will offer those systems an "accelerated deployment" of broadband video, data and voice services.
Earlier this year, SusCom parent company Susquehanna Pfaltzgraff announced plans that it would sell off its cable, radio and pottery businesses, as younger family members of the company were not interested in taking over the company.
The deal with Comcast is expected to close in the first half of 2006. Comcast presently has 21.4 million cable subscribers.