Seems expensive to me! Lets say each home is one customer @ 90$/month for cable, tel, and inet. Thats about 3.2M. It'll take 12 years to recover just the purchase price and thats being optimistic assuming all 36,000 homes subscribe. Not to mention upkeep and expansions!
36,000(subs) X $90 X 12(months) = $38,880,000. Figures to be more like 1 year, 2 weeks & 2 days ($38,880,000 X 1.04423868 years = $40,600,000.) But yeah still kinda high. Typical buyouts are about 50% annual gross.
Reader Comments (Page 1 of 1)
kevinj @ May 9th 2008 5:02PM
Seems expensive to me! Lets say each home is one customer @ 90$/month for cable, tel, and inet. Thats about 3.2M. It'll take 12 years to recover just the purchase price and thats being optimistic assuming all 36,000 homes subscribe. Not to mention upkeep and expansions!
GhostDoggy @ May 10th 2008 6:44PM
Kevin, is there something preventing the new suitor from offering commercial data and voice services for higher profits?
ljasper79 @ May 11th 2008 1:42AM
36,000(subs) X $90 X 12(months) = $38,880,000. Figures to be more like 1 year, 2 weeks & 2 days ($38,880,000 X 1.04423868 years = $40,600,000.) But yeah still kinda high. Typical buyouts are about 50% annual gross.