Comcast Corporation Agrees to Buy Susquehanna Communications from Susquehanna Pfaltzgraff
PHILADELPHIA, PA and YORK, PA
Susquehanna Pfaltzgraff Co. and Comcast Corporation (Nasdaq: CMCSA, CMCSK)
announced today that they have signed a definitive agreement to sell Susquehanna
Communications (SusCom), the cable television and broadband services division
of Susquehanna Pfaltzgraff, to Comcast, the nation's leading provider of cable,
entertainment and communications products and services. Susquehanna Pfaltzgraff
announced earlier this year that it would sell the business, citing changes in
corporate and family circumstances.
"We are extremely proud of the state-of-the-art systems and exceptional
customer care that SusCom and its outstanding people deliver to the
marketplace today," said Louis J. Appell, Jr., chairman of the privately owned
Susquehanna Pfaltzgraff Co. "We were a pioneer in cable television 40 years
ago and have continually sought to provide our customers with leading-edge
William H. Simpson, president and chief executive officer of Susquehanna
Pfaltzgraff, said, "Technological innovation is occurring rapidly in the
cable and telecommunications industries, providing the ability for large
companies like Comcast to cost-effectively deliver more traditional cable
channels, as well as advanced services like Video on Demand and Voice over
Internet Protocol telephony."
Comcast Chairman and CEO Brian L. Roberts said, "These cable systems have
been well run and are very complimentary to Comcast's service areas. We look
forward to introducing Comcast's advanced suite of broadband services in these
Comcast owned approximately 30% of SusCom prior to today's announcement.
SusCom serves 225,000 basic cable subscribers primarily in Pennsylvania, New
York, Maine, and Mississippi, many of which are in close proximity to systems
already served by Comcast. Consumers in these markets will benefit from the
accelerated deployment of advanced video, high-speed data, and voice services.
The total transaction value is $775 million and will result in Comcast
consolidating the operations of SusCom for a net cash investment of
approximately $540 million or $440 million after taking into account certain
tax benefits. The transaction is expected to close in the first half of 2006
subject to various regulatory and customary closing conditions.
UBS Investment Bank acted as exclusive financial advisor to Susquehanna
Pfaltzgraff Co. and Goldman, Sachs & Co. acted as exclusive financial advisor
to Comcast Corporation. Separately today it was also announced that
Susquehanna Pfaltzgraff agreed to sell Susquehanna Radio's operations to a
partnership led by Cumulus Media, Inc.
Comcast Corporation (Nasdaq: CMCSA, CMCSK) (http://www.comcast.com) is the
nation's leading provider of cable, entertainment and communications products
and services. With 21.4 million cable customers, 7.7 million high-speed
Internet customers, and 1.2 million voice customers, Comcast is principally
involved in the development, management and operation of broadband cable
networks and in the delivery of programming content.
The Company's content networks and investments include E! Entertainment
Television, Style Network, The Golf Channel, OLN, G4, AZN Television, PBS KIDS
Sprout, TV One and four regional Comcast SportsNets. The Company also has a
majority ownership in Comcast-Spectacor, whose major holdings include the
Philadelphia Flyers NHL hockey team, the Philadelphia 76ers NBA basketball
team and two large multipurpose arenas in Philadelphia. Comcast Class A common
stock and Class A Special common stock trade on The NASDAQ Stock Market under
the symbols CMCSA and CMCSK, respectively.
About Susquehanna Communications and Susquehanna Media:
Founded in 1965 as a division of Susquehanna Broadcasting Co. (now
Susquehanna Pfaltzgraff Co.), SusCom now ranks among the top 20 cable and
broadband providers in the country, serving more than 232,000 customers in
Pennsylvania, Mississippi, Maine, Illinois, Indiana and New York.
The company name was changed to Susquehanna Communications in 1999,
reflecting its change from a provider of traditional cable television to a
provider of a variety of advanced, interactive, digital communications
products. SusCom has been a leader in delivering advanced technologies to
customers in the communities it serves. Today, the company offers a variety
of analog and digital video services, HDTV, DVRs and high-speed Internet
access, as well as telephone service in its Carmel, N.Y. system.
Susquehanna Media is a diversified communications company with significant
operations in radio broadcasting and cable television. In addition to
Susquehanna Communications, the company includes Susquehanna Radio, the
largest privately held radio group and the 11th largest radio broadcaster in
the country ranked by revenues.
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