Private equity firms sure love cable operators
TPG on Monday agreed to a $2.25 billion deal for RCN Telecom Services and Grande Communications Networks, snapping up the two companies from a smaller buyout firm, Abry Partners.
It’s a deal that was likely inspired by TPG’s insight into growing demand for affordable, high-speed internet from its various content-related investments. These include music-streaming service Spotify, broadcast television network Univision and film and television studio STX Entertainment as well as talent agency CAA, which negotiates advertising and other deals for clients, including YouTube stars. Such is the demand for broadband that it gives cable companies such as RCN and Grande ample cover from cord cutters…
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