Time Warner Cable will acquire cable operator Insight Communications, the larger cable company announced today.
According to Time Warner Cable, it will pay $3 billion in cash for Insight Communications, which currently offers television, Internet, and phone service to more than 750,000 customers across Indiana, Kentucky, and Ohio.
Time Warner Cable has over 14 million customers using its service around the U.S.
Earlier this morning, The Wall Street Journal reported the companies were nearing an agreement, and would announce the deal at some point today. In addition, the Journal reported that Time Warner Cable outbid a host of other firms that were trying to acquire Insight, including competitor Cablevision.
With the addition of Insight, Time Warner Cable now puts itself in a much better position to take on its larger competitor, Comcast. That company also has not been a stranger to acquisitions. Earlier this year, Comcastafter facing backlash from regulators.
For Time Warner Cable, the regulatory hurdles shouldn't be so great. However, the companies must receive approval from the FCC before completing the acquisition.