Monday, January 19, 2009

Charter Cable May File For Bankruptcy

As cable distribution gets more competitive with both telcos and satellite competing with cable operators, and customers preferring broadband to cable for entertainment, Charter must decide what to do next. Do they use bankruptcy protection to revise their strategy and revisit their costs in order to renegotiate better contracts, or do they sell off their cable properties to pay off their creditors? Paul Allen has had a tough time turning Charter into a profitable venture. "Allen, the co-founder of Microsoft Corp., has held a controlling stake since 1998 in the company, which hasn’t turned a profit since going public a decade ago." Is this unexpected for Charter, NO; but it is sad to see another cable operator bite the dust. The landscape is filled with many cable companies no longer part of the landscape: Adelphia, TCI, Suburban, Lenfest, Helicon, Prime, Falcon, Tele-Cable, Wometco, and many, many, many others. Goodbye Charter.

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