Adelphia saved by Time Warner and Comcast bid

Time Warner and Comcast have apparently made a successful bid to buy
Adelphia Communications for almost $18 billion in cash and stock, beating out a last minute attempt by Cablevision to buy the bankruptcy-plagued Adelphia.

Spokesmen for the three companies involved in the deal refused comment late Thursday, but the deal was presented to a bankruptcy judge on Thursday.

A majority of each class of Adelphia’s creditors must approve the deal.

If successful, the deal would further contract the cable industry, in which such mergers and takeovers have left the consumer fewer and fewer choices of providers.

With approval, the deal would hand Adelphia’s 5.3 million subscribers to Time Warner and Comcast. Adelphia had to seek bankruptcy protection after its founder and his two sons were accused of taking billions of dollars from the company.

John J. Rigas and one of this sons were found guilty; the other son’s trial ended in a hung jury.

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