The two top executives at Insight Communications have increased their bid to take the company private, prompting the company’s board to approve the deal.
The bid was submitted in March by Chairman Sid Knafel and President Mike Willner with the backing of investment firm The Carlyle Group.
Knafel and Willner initially offered to buy out public shareholders for $10.70 per share, or $650 million.
After months of discussions with a committee of independent directors, the group increased their bid 9.8% to $11.75, or $715 million.
Willner and Knafel already own 16% of the company’s stock. However, the financial burden for the 1 million-sub company is now much greater.
Insight already carries $2.8 billion in debt, or around six times its cash flow.
The television industry's top news stories, analysis and blogs of the day.