Comcast Posts Stronger Results for Business Pegged for Spinoff

Features Reuters

Comcast Corp. said the part of its business that it expects to spin off as part of its deal to buy Time Warner Cable Inc. posted higher revenue and profit for the first nine months of the year.

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Revenue for the operations rose 3.4% to $3.46 billion, while its profit increased slightly to $484 million.

Comcast, in a bid to ease regulatory concerns over its $45 billion Time Warner Cable deal, agreed to spin off part of its business into a joint venture. Comcast shareholders would own 67% of the new company, while Charter Communications Inc. investors would hold the rest.

The new company--which will offer video, Internet and voice services--is expected to be known as Greatland Connections Inc. after the deal is done. It would serve 11 states across the Southeast and Midwest.

Comcast also planned to sell 1.4 million existing Time Warner Cable customers to Charter for about $7.3 billion. Likewise, Charter and Comcast also plan to swap another 1.6 million Time Warner Cable customers and 1.6 million Charter customers.

The deals represent a sort of consolation prize for Charter after Comcast's deal in February to buy Time Warner Cable ended its pursuit of the same company.