Pay television operator Wide Open West inked two separate deals late last month that will result in the cable company selling off part of its service footprint.
The dual deals will see Wide Open West (stylized as “Wow!”) giving Atlantic Broadband ownership of its Cleveland and Columbus, Ohio operations. Astound Broadband will acquire the company’s Anne Arundel (Maryland), Chicago and Evansville (Indiana) service areas.
The Atlantic deal is valued at $1.125 billion, while the Astound Broadband merger will fetch $661 million, the website Fierce Video reported. When the dust settles, Wide Open West will still retain cable and broadband Internet operations in Alabama, Florida, Georgia, Michigan, South Carolina and Tennessee.
“We are pleased to reach these two agreements as [Wide Open West] takes a significant step toward accelerating our broadband-first growth strategy at a pivotal time in our industry,” Teresa Elder, the company’s chief executive, said in a statement. “The substantial proceeds from these transactions reflect the attractiveness of our assets and the clear opportunity to expand our position as a trusted provider of reliable, accessible and fast broadband solutions.”
Elder said the deals will help Wide Open West reduce some of its debt load “as we continue to execute our broadband-first strategy.”
Wide Open West offered few details on how the merger will affect employees, except to say that some will remain with the company, some will transition to the newer owners, and some will exit completely.