New York City, NY – Adelphia Communications was reportedly in talks this weekend with Microsoft co-founder Paul Allen regarding the sale of Adelphia's Los Angeles area cable assets.
The New York Times reported Monday that the 1.2 million subscriber system would be sold for $ 4 billion. Allen controls another cable giant, Charter Communications.
Still, the Times article says the situation is "fluid," and that other cable companies continue to review Adelphia's financial data.
On Friday, Adelphia filed a report with the Securities and Exchange Commission (SEC) that details the financial ties between the Rigas family and publicly-held Adelphia. For example, the report confirms that Adelphia backed $150 million in debt incurred by the Buffalo Sabres hockey team owned separately by John Rigas. In addition, Adelphia spent $13 million to construct a golf course on land owned by John Rigas in Coudersport, PA.
The SEC continues its formal investigation of Adelphia. In addition, federal prosecutors in New York and Pennslyvania are conducting a probe.
John Rigas, and his sons Timothy, Michael and James, gave up their seats on the Adelphia board last week and agreed to transfer more than $1 billion in assets to Adelphia.
The companies troubles surfaced in March when Adelphia revealed more than $3.2 billion in previously undisclosed, off-the-books debt. The company then announced it would market some of its cable assets, including the Los Angeles system, to raise necessary capital.
Adelphia stock closed up 15-cents Friday to $2.77 a share.