Comcast to buy Patriot Media for around $483 mln
(Adds details, Comcast quote)
NEW YORK, April 3 (Reuters) - Top U.S. cable television operator Comcast Corp. (CMCSA.O) said on Tuesday it plans to acquire cable company Patriot Media & Communications for around $483 million in net cash. Privately held Patriot Media has around 81,000 subscribers in the central New Jersey area, including Princeton and counties like Somerset, Hunterdon, Morris and Mercer, which are close to existing Comcast cable systems in Monmouth and Ocean counties, Trenton and Northwest New Jersey.
Comcast said the high price tag of $5,960 per subscriber was justified by the quality of the network and its high net-worth subscribers who take additional products such as digital phone and high speed Internet access.
"These systems have great demographics and are so well managed that they generate almost twice as much cash flow as the average customer," said Comcast spokeswoman D'Arcy Rudnay.
Comcast's average cashflow per subscriber is $435. Patriot is jointly owned by Steven Simmons, Spectrum Equity Investors and Spire Capital.
The deal is expected to close in the third quarter of 2007, subject to regulatory approval, Comcast said.
((Reporting by Yinka Adegoke and Ritsuko Ando; editing by Deborah Cohen; Reuters Messaging: ritsuko.ando.reuters.com@reuters.net; +1 646 223 6084)) Keywords: PATRIOT COMCAST/
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