Business

Sale of Continuum may fetch $80 million

Aug. 12. By Dave Yochum. It looks like Continuum, the new name of MI-Connection, could fetch $80 million in a proposed sale that will be outlined at the Davidson Town Board meeting Tuesday night. That’s what the towns of Davidson and Mooresville paid to take over a piece of the old, scandal-plagued Adelphia system back in 2007.

AUGER

While it may have seemed like a good idea at the time, operating a cable system proved costly for the towns. In Davidson alone, the town had to cover $10 million in losses over the course of a dozen years—with taxpayers footing the bill.

Operating-wise, the late Continuum CEO, David Auger, turned a sow’s ear into a silk purse. It was the debt service on the top-dollar acquisition that made the cable company a losing proposition for the towns.

It represents almost 10 percent of Davidson’s total annual budget.

Davidson officials would not discuss the name of the acquiring company.

Continuum serves approximately 17,000 customers in three towns: Mooresville, Davidson and Cornelius. Mooresville and Davidson make annual debt service payments while Cornelius chose not to participate in the purchase a decade ago.

Mooresville has paid $28.3 million in debt service.

Continuum/MI-Connection has had its challenges with many households dropping land lines in favor of cell phones, and cable TV in favor of streaming.

Continuum under Auger continually improved their products and services, at the same time maintaining a focus on customer care. Auger is credited with introducing faster internet speeds and new technologies to the market, not to mention a stronger bottom line—short of the debt service.

The highly regarded CEO passed away in May after almost eight years with the company.

KNOX

The sale will also require approval from Mooresville Town Board, Continuum board of directors, and voters in both Davidson and Mooresville.

Davidson Mayor Rusty Knox said the town will “take the necessary measures tomorrow night to ensure” that a referendum to sell Continuum is on the ballot for November.

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