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Cox buys Vegas network
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May 5, 1998: 4:41 p.m. ET
Prime South cable company acquired for $1.325 billion in cash and stock
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NEW YORK (CNNfn) - Cox Communications Inc. Tuesday agreed to acquire Prime South Diversified Inc., a Las Vegas-based cable operator, for $1.325 billion in cash and stock.
With its 319,000 residential cable-television customers, Prime South gives Atlanta-based Cox control of the entire Las Vegas, Nev., metropolitan area. Prior to the transaction, Cox had some 2.2 million paid-up subscribers in Southern California and Arizona.
Prime South is currently majority-owned by the Greenspun family of Las Vegas, which also owns The Las Vegas Sun. Prime Cable of Austin, Texas, and various institutional investors also own stakes in the company.
The transaction is structured so that Cox and the Greenspun family will be partners in all of the businesses in Las Vegas.
In addition to the cable systems, Prime South's assets included Hospitality Network Inc., a hotel-room video service with 105,000 subscribers; telecommunications concern PrimeTel of Nevada; and minority stakes in NextLink Nevada, another telecommunications company, and Las Vegas One -- the market's only 24-hour television news operation.
The Las Vegas metropolitan area ranks among the 10 largest cable systems in the country.
Closing of the transaction is subject to necessary government and regulatory approvals.
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