Charter Cable Expands Reach in Southeast

Charter Communications Corp., the cable TV company owned by billionaire Paul Allen, agreed to buy cable systems in 18 states from two closely held partnerships, broadening its business in the Southeastern U.S.

Charter is buying systems with a combined 460,000 subscribers from Denver-based InterLink Communications Partners and Rifkin Acquisition Partners. Charter didn’t say how much it will pay to acquire the partnership interests or how much debt is being assumed. The transaction is valued at $1.6 billion.

Allen has been aggressively buying cable operators, planning to use their lines to deliver high-speed communications and computer services to homes. Allen, a Microsoft Corp. co-founder and one of the world’s richest people, bought Charter last year and is combining it with his Marcus Cable Properties Inc. to form the seventh-largest U.S. cable company. With this purchase, he would have a total of about 3 million subscribers.

“This transaction enhances Charter’s clustering strategy while allowing us to develop a presence in growing markets,” Charter President and Chief Executive Jerald Kent said in a statement.

The acquisition is Allen’s third this year. Last month, he agreed to buy and exchange systems in a three-way transaction with InterMedia Partners and Tele-Communications Inc. Earlier in January, Charter bought four Southern California systems from American Cable Entertainment Co.

The acquisitions would give Allen more subscribers to spread the cost of providing new cable and telecommunications services, including high-speed Internet access, digital television with more channels, and telephone service.