Frontier Communications is selling the networks and customer accounts of operations in Washington, Oregon, Idaho, and Montana to WaveDivision Capital and Searchlight Capital Partners for $1.352 billion in cash.
Those networks have a combined 350,000 access lines access lines in service (business and consumer), $619 million of revenue, $46 million of net income and $272 million of adjusted EBITDA.
The deal essentially values each of the active lines at about $3863. By way of comparison, cable TV subscribers in recent years have been valued at about $4,000 to $5,000 each. Charter bought Time Warner for about $5178 per relationship.
Of course, all of Time Warner’s “lines” or relationships were broadband. Perhaps 29 percent of Frontier’s lines are broadband in a way that compares to cable connections.
Across the four states, Frontier’s network passes 1.7 million residential and business locations, of which approximately 500,000 are fiber-to-the-premises capable. As of March 31, 2019, Frontier served approximately 150,000 fiber broadband, 150,000 copper broadband and 35,000 video connections in these states.
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