Time Warner Cable to IPO

So while some cablecos are talking about going private (Cablevision, anyone?), Time Warner Cable just filed to go public. It's not about raising cash--it's a way for partner Comcast to cash out of the Adelphia purchase. Yes, it's complicated, but don't worry about it because that's not the point here. The pricing of the IPO implies that TWC values each basic cable subscriber at $3629. At $50/month (remember: basic cable), that means TWC expects to keep a customer for about 6 years. But add in upgrades like phone service, and that 6-year customer becomes far more valuable--and by watching the stock and reading those quarterly reports, we'll get to see just how valuable those basic customers turn out to be.

For more information about the TWC IPO:
- read this article from Broadcasting and Cable