RCN, a triple play cable company, after spending four months in bankruptcy has filed a reorganization plan and plans to come out of Chapter 11 by end of 2004, reports Wall Street Journal. The Princeton, NJ company plans to reduce its debt to $480 million from $1.66 billion. Whichever way it turns out, RCN has turned out to be one bad investment for Paul Allen. Microsoft co-founder bought a 25% stake in the company for about $1.65 billion in 1999. last year, he sold 40% of his interest in the company for $2 million. In essence, his $1.65 billion investment at that time was worth $5 million. Even if RCN makes an amazing and heroic turnaround, Allen will still be licking his finanical wounds for a long long time.
2 thoughts on “RCN’s back from the brink plan”
There is a reason we call Paul Allen “Dr. Netvorkian” on KenRadio’s World Technology RoundUp. Every investment he makes dies…
Then again, he has already invested in dead people, with the Jimi Hendrix Experience Museum..and I’m a huge Hendrix Fan so I dig that !