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Knology acquired by WOW! Internet, Cable & Phone

Wednesday, July 18, 2012 12:19 PM
Last updated 8:43 PM
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The sale of regional cable operator Knology Inc. is complete.

WOW! Internet, Cable & Phone, whose controlling shareholder is Avista Capital Partners, acquired Knology Inc. by merger Tuesday. First announced in April, WOW acquired Knology for $19.75 per share in cash. The all-cash transaction is valued at about $1.5 billion, which included all assets and liabilities.

Knology filed to have its stock removed from Nasdaq effective immediately.

“Between the two of us, we are now the ninth-largest cable operator in the country. We have 800,000 customers in 13 states,” said Abu Khan, the former general manager of Knology in Augusta and now vice president and general manager of WOW in Augusta. “WOW wanted to get a little bit larger. Knology made a lot of sense in terms of their strategy. It was good for WOW in terms of their expansion, and it was good for Knology shareholders.”

The transaction was approved by Knology shareholders during a special meeting June 26. Credit Suisse, Morgan Stanley, RBC Capital Markets, SunTrust Robinson Humphrey and Bank of Tokyo-Mitsubishi UFJ committed debt financing for the deal.

WOW, a provider of residential and commercial high-speed Internet, cable television and phone services, operates in Michigan, Illinois, Ohio and Indiana. Its customer base now includes Knology’s service area of the southwestern and Midwestern United States.

It will take some time for Knology to start operating solely under the WOW name, Khan said.

“We’ll continue to have our vans, logos and shirts as Knology for at least the short term as we get through all of the changes,” he said.

Throughout the company, the majority of Knology employees will not experience any changes in their positions. Knology has 90 employees and 300 call center representatives in Augusta, Khan said.

“There will be some employees that we’ll look at in terms of duplicating positions. For instance, we certainly don’t need two CEOs. We’re going to maintain a real open and honest communication with all of our employees,” he said. “But here, in terms of our field folks and customer service folks, we’re still going to need those guys. We don’t foresee any changes there.”

Colleen Abdoulah, WOW’s CEO, will continue in her role. Todd Holt, the former chief financial officer and president of Knology, was named WOW’s chief financial officer.

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stillamazed
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stillamazed 07/18/12 - 02:12 pm
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Changes????

Wonder if the rates will go up now? If they do I am switching to dish! I left Comcast and switched to Knology because the rates kept climbing.

Just My Opinion
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Just My Opinion 07/18/12 - 08:03 pm
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still, I don't know a thing

still, I don't know a thing about what's going to happen, but I think it's a safe bet the prices WON'T be coming down! I think the prices typically go up when this sort of thing happens, but they also tend to mix in some new channels or dangle some new carrot in front of us to keep up with them.
Colleen Abdoulah??....You think she's any kin to the old, fat, CRAZY wrestler "Abdullah the Butcher"???

TrukinRanger
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TrukinRanger 07/19/12 - 07:03 am
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Yeah- 20 more channels that
Unpublished

Yeah- 20 more channels that you won't watch! I wish we could go back to where you could pick the channels you wanted and pay per channel. In the old massive satellite dish days you could do that- have your base channels and then add individual ones you wanted.

avidreader
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avidreader 07/19/12 - 10:08 am
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Prices!

The options for home services are wide open these days, so companies like WOW will be forced to stablize prices. If one has a good track record for making payments, switching to another company -- Comcast, Dish, etc. -- is as easy as a phone call.

Also, why is it that companies like Knology (and cell phone providers) always offer these great deals for new customers and NEVER to their loyal, years-long customers? This doesn't seem fair. I've been with Knology since its grand opening in Augusta, and they've never offered me anything special.

Just My Opinion
5258
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Just My Opinion 07/19/12 - 07:42 pm
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Man! It sure didn't take

Man! It sure didn't take Comcast long to jump on this! This afternoon I had a man canvassing our neighborhood from Comcast (XFininity) handing out fliers about some new offer they're giving out to Knology customers. The guy said "Well, you know Knology sold out and now they're gonna change everything you're watching!"! So, is that the tactic they're using??? Fear mongering?? I also saw ad somewhere (honestly can't remember where) today that said something about Knology "selling out" and "leaving" the Augusta area. I'll tell you this, I HATE when companies resort to talking bad about their competition! It's okay for ME to do it, because I'm the customer, but it shows alot to me about the company dishing out the dirt!

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