AOL Time Warner's cable division and Advance/Newhouse Communications have restructured their cable partnership in a deal that will switch about 2.1 million cable subscribers into the Newhouse fold and reduce TWC's cable base by about 16 percent.
The consolidation, which the industry has expected for some time, also calls for Time Warner Cable to take over the Syracuse, N.Y.-based Newhouse's stake in Road Runner, AOL's high speed cable modem Internet service provider.
As a result of the changes, Time Warner Cable will be serving about 10.8 million cable subscribers but will have also consolidated its interest in Road Runner, the provider of high-speed Internet access over cable lines, which counts an estimated 2 million subscribers. The flagship AOL dial-up service counts about 34 million subscribers.
TWC will still hold on to its position as the second-largest cable provider behind the estimated 22 million that AT&T Broadband and Comcast Corp. will net when the two complete their merger.
Advance/Newhouse's 2.1 million cable customers in the deal are based in Florida, Alabama, Indianapolis, California and Michigan.
News source: Internet News
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