Altice Set To Acquire Cablevision in Deal worth $17.7 Billion

Altice

Altice founder Patrick Drahi

European telecommunications and cable group Altice has agreed to purchase Cablevision, the fifth-largest cable operator in the U.S. and owner of New York’s Newsday newspaper for $17.7 billion, including debt. The deal is the latest in a series of moves that are re-shaping the U.S. broadband and cable television market.

Altice announced the deal Thursday morning and Cablevision, which is controlled by the Dolan family, said that the time is right for new ownership of Cablevision.

Netherlands-based Altice founder Patrick Drahi built a telecoms and cable empire in recent years through debt-fueled acquisitions in France, Portugal and Israel. Last year, the company acquired France’s No. 2 mobile phone operator, SFR for $18.5 billion. Beginning this year, Altice purchased Portugal Telecom for $8.4 billion. It also has operations in Belgium, Switzerland and elsewhere.

The move is part of the Altice’s aggressive expansion in the U.S. In May, it announced a $9.1 billion deal for Suddenlink; a small regional cable group based in St. Louis and had openly announced further expansion there.

Shares of Cablevision Systems Corp. surged 16 percent to $33.12 in after-hours trading Wednesday.

According to Altice, the deal will be funded with $14.5 billion of debt at Cablevision plus cash from both companies. The company said it hopes to complete the deal in the first half of 2016, though it remains subject to regulatory approval.

The U.S. cable industry has been in merger frenzy over the past few years as consumers increasingly ditch their TV packages and watch video online from competitors like Netflix, while cable companies’ costs for sports and other channels increase.

In May, Charter Communications, backed by cable pioneer John Malone, agreed to buy Time Warner Cable and Bright House for $67.1 billion. That comes after regulators had opposed a tie-up between Comcast and Time Warner. Recently, AT&T closed on a $48.5 billion purchase of satellite TV company DirecTV, bringing one of the nation’s largest wireless carriers together with the largest satellite TV provider.

Altice will now fall heir to 2.78 million broadband customers and 2.64 million pay-TV customers in New York City’s Long Island suburbs and other parts of the New York metro area. The company will also inherit Newsday, a 400,000-circulation Long Island newspaper, and the seven regional Channel 12 cable news networks, according to reports.

Altice’s CEO Dexter Goei has said that the company is aiming for half of its portfolio to be U.S. business.

Carrie Ann
Carrie Ann is Editor-in-Chief at Industry Leaders Magazine, based in Las Vegas. Carrie covers technology, trends, marketing, brands, productivity, and leadership. When she isn’t writing she prefers reading. She loves reading books and articles on business, economics, corporate law, luxury products, artificial intelligence, and latest technology. She’s keen on political discussions and shares an undying passion for gadgets. Follow Carrie Ann on Twitter, Facebook

Recent Posts

What makes Netflix the first streaming success story?

What makes Netflix the first streaming success story?

Netflix has become synonymous with streaming movies and television. Not only that, Netflix reigns supreme in the world of streaming with mind-boggling 209 million subscribers. Here
9 hours ago
Tesla’s Q3 results deliver high growth and revenue

Tesla’s Q3 results deliver high growth and revenue

Tesla’s total revenue grew 57% YoY at $13.76 billion, as it delivered more cars and witnessed a steady growth in other parts of the business.
1 day ago
Should you sit out on the Rivian IPO?

Should you sit out on the Rivian IPO?

Amazon-backed EV maker Rivian has filed for its initial public offering. We find out if the Rivian IPO is worth the price or simply the next internet bubble.
3 days ago
Bitcoin vs Gold: Here’s what experts have to say

Bitcoin vs Gold: Here’s what experts have to say

Many say that Bitcoin is the digital version of gold. While gold, like the dollar, is an outdated investment vehicle. We turned to experts to settle the bitcoin vs gold debate.
4 days ago
Best Pharma Stocks to Buy Right Now

Best Pharma Stocks to Buy Right Now

Industry Leaders has curated a brief list of the best pharmaceutical stocks you can buy right now, along with a list of pharma penny stocks that have the best potential to grow in
5 days ago
Why Is Squid Game So Popular?

Why Is Squid Game So Popular?

The Squid Game segments were watched by at least 132 million people in the first 23 days of the show on Netflix. Know what excited the viewers.
5 days ago