Prime Cable talks to big investors

Tuesday, March 3, 1998 | 12:07 p.m.

The Greenspun family of Las Vegas is talking with major telecommunications companies interested in investing in Prime Cable of Las Vegas -- a system valued at $1 billion or more.

Brian Greenspun, who oversees the family's business interests, said the company is not selling out completely but is considering numerous options including selling some of its 63-percent ownership interest in the system.

The family's investment in Nextlink's local telephone system as well as the Hospitality Network, a cable system serving resorts, also could be involved in the deal.

Greenspun is president and editor of the Las Vegas SUN, which was founded in 1950 by his father Hank Greenspun. He said it will not be sold. Neither will the family's other print publications. Its real estate operations are not part of the talks.

Broadcasting & Cable magazine reported Monday that Comcast, Tele-Communications Inc., Cox Communications and Charter Communications are bidding to buy Prime Cable of Las Vegas. Greenspun said additional companies called about the investment opportunity since that story was published.

"As we view the world it is going to require larger players with greater access to capital, technology and global partnership opportunities," Greenspun said today. "It's incumbent on us to talk to these people to see how we can keep the Las Vegas cable system at the forefront of the technological evolution.

"If that means bigger players with greater access to capital that's one strategy. If it's people with a different view that's a different strategy. We don't know what, if anything, will result from these conversations," he said.

"The Greenspun family has no intention of getting out of the communications industry in Clark County. If anything our goal is to enhance our involvement."

Greenspun said any payment the family received from an investor in the system would likely be reinvested in its local communications operations.

"We're not getting out... we're getting in deeper," he said.

Harris Bass, vice president and general manager of Prime Cable, said negotiations could take a year and that it was too early to say what the effect would be on Prime's 480 employees or 370,000 customers.

But he confirmed the Las Vegas Prime Cable system is probably worth $1 billion or more, considering its size, seven percent annual growth and a telecommunications future in which television, telephone, Internet and other data and entertainment services such as movies on demand will be delivered by Prime Cable.

Prime Cable of Austin, Texas, and Bell South own 37 percent of the Las Vegas system. Broadcasting & Cable said the Texas-based Prime Cable -- not the Greenspun family -- is separately negotiating the purchase of a wireless cable system in Southern California.