Getting your player ready...
THE DEAL: Cablevision Systems Corp., which serves the New York metro area, is buying Bresnan Communications, a cable TV provider in four Western states, for $1.4 billion.
THE MONEY: The purchase is funded by $1 billion in non-recourse debt, a type of borrowing backed by collateral that does not leave the borrower on the hook in a default. Cablevision will come up with the rest.
THE OUTLOOK: Analysts said Cablevision overpaid. The price is 8.5 times Bresnan’s earnings before interest, taxes, depreciation and amortization. Cable companies are trading at 5.8 times adjusted earnings.
