Cablevision's Adelphia Bid Puzzles Wall St.


Alan Bezoza, media analyst with Wall Street adviser Friedman Billings Ramsey Group Inc., said he is perplexed about Cablevision Systems Corp.'s all-cash offer for Adelphia Communications Corp., which it reportedly submitted Tuesday.

Particularly, he says, given its ongoing battle over the wind-down of HDTV satellite service Voom! and the battle over a new stadium in New York that could compete with Cablevision's Madison Square Garden.

Bezoza remains bullish on Cablevision--reiterating his outperform rating on the stock--but that is despite the offer, which he thinks would be hard to finance, and because he expects bidders Comcast/Time Warner, who have offered pre-$17.6B, which includes some cash but is mostly Time Warner Cable stock.

Bezoza expects them to up the ante, saying that buying Adelphia, then divvying up the cable system assets, would be a tax-friendly way for Comcast to unwind it 21% stake in Time Warner Entertainment.