Home » Comcast/Xfinity »Competition »Consumer News »Public Policy & Gov't » Currently Reading:

GreatLand Connections Has Few Employees, No Building; Yet Wants to Serve 2.5 Million Subscribers

Phillip Dampier November 6, 2014 Comcast/Xfinity, Competition, Consumer News, Public Policy & Gov't No Comments

greatlandGreatLand Connections, a new cable company with no headquarters building and only a handful of employees, is seeking permission to serve 2.5 million ex-Comcast/Time Warner Cable customers while saddled with $7.8 billion in debt the day its opens for business.

The entity, now administered primarily by a small executive team, will trade on the NASDAQ exchange under the symbol ‘GLCI’ and would start operations in 2015. Tidbits about the planned cable operator were included in a regulatory filing with the Securities and Exchange Commission, primarily concerning how shareholders and executives will be handled if the merger is approved.

GreatLand Connections was created to appease the U.S. Justice Department and Federal Communications Commission that earlier expressed concern about any single cable operator exceeding 30 percent of the national cable television market. Spinning off 2.5 million customers in less desirable service areas keeps Comcast’s market share just under 30%, but the SEC filing reveals Comcast isn’t exactly kicking customers out in the cold and disinheriting them. Comcast shareholders will own and control 67% of GreatLand Connections. Comcast will also select six of the nine members of the Board of Directors at GreatLand, and the SEC filing includes an admission to shareholders that a conflict of interest could exist between certain executives and board members who have investments in both cable companies.

The new company’s large debt load — about five times the company’s estimated earnings before interest, depreciation, taxes, and certain other expenses, is designed to shield Comcast from having to pay taxes on the spinoff. GreatLand’s filing states the transfer deal and spin-up of its company will qualify as a tax-free reorganization transaction.

The initial debt load is considerably higher than what most other cable companies carry, which makes it likely subscribers will be asked to help pay it off in the form of higher rates for years to come.

Even without a single piece of office furniture in place, GreatLand could begin serving as one of the nation’s largest cable companies with an estimated value of $5.7 billion in less than a year.

(Clarification: This article was updated to reflect Comcast shareholders will own 67% of GreatLand after the transaction closes.)

Search This Site:

Contributions:

Recent Comments:

  • Rossa Williams: I moved over and they qualify for early buyout off under $500 I've called twice I've got no respond they say they was going to send me something in th...
  • snake: I had the original $20 a month service for years. Then last week they shutdown my internet, before my bill was due. I paid the amount. Service was sti...
  • JayS: Are the streaming services that carry local channels (Sling, DirectTv Now, YouTubeTv....) paying the same/similar remuneration to the local stations a...
  • Nicole: Would be fine if spectrum actually worked all the time. It's the worst....
  • jeff k: So glad I looked at reviews FIRST! I was 5 minutes away from buying the 3 for $73.75 deal. WOW, I started the day calling COX to find out how much it ...
  • Adam: Figured I’d take a deeper look into my bill. Each month it kept slowly creeping up! My bill increased $20 more since last year! I’m stuck with their m...
  • Divine Retribution: I've had Fios since 2006 when it was originally owned by Verizon & much better then mind you & I can tell you their internet speed isn't even ...
  • Mark: I ordered LiveWave yesterday and used PayPal/AMEX. I read through theses comments and decided to cancel my order. I called the number listed on my ord...
  • fordoughnow: My Internet started at $40 less than 2 years ago with Spectrum. $68 now with all the taxes and service BS. I haven't had a raise in that time so I'm n...
  • Bob: Altice is garbage and they can't deliver even close to the internet speeds they claim. They should be paying me to use their sh*t altice and their gar...
  • Suze: I so agree. They couldn’t make Prisim a win so they sold out to DT. Losers. Worst customer service ever....
  • Sandra neil: God I dealt with them for 5 yrs, hideous customer service. They’re now moving all they’re customers to Direct Tv. I have nothing other then northern e...

Your Account: