Tags: charter | bright house | cable | companies | merger

Charter, Bright House: Cable Companies to Merge in Mega $10.4B Deal

By    |   Tuesday, 31 Mar 2015 01:26 PM

Charter Communications will acquire Bright House Networks, the sixth-largest cable operator in the nation, for $10.4 billion as part of the country's media acquisition frenzy — that is if all goes as planned.

The deal reportedly hinges on the Comcast Time Warner Cable deal, which would send its disposed assets Charter's way, according to The New York Times.

Bright House boasts 2 million subscribers in Florida, Alabama, Indiana, Michigan, and California.

"Bright House Networks provides Charter with important operating, financial, and tax benefits, as well as strategic flexibility," Thomas M. Rutledge, Charter's chief executive, said, according to The Times. "Bright House has built outstanding cable systems in attractive markets that are either complete, or contiguous with the New Charter footprint. This acquisition enhances our scale, and solidifies New Charter as the second largest cable operator in the U.S."

Fortune reported that Charter has key markets in Alabama, Georgia, Michigan, and California, but has lacked a strong presence in Florida — something Bright House would provide.

According to the magazine, Charter would pay Bright House parent Advance Newhouse $2 billion in cash and the remaining in common and convertible preferred units of a newly created partnership for the deal. Charter would then own 73.7 percent of Bright House and Advance Newhouse would own the rest, the companies said in a statement.

The New York Times wrote that the Charter/Bright House deal is a signal that those executives believe that the Comcast/Time Warner acquisition will go through.

"We share the same vision for the future of our business as Tom and the Charter leadership team, which is to gain market share by offering customers competitive products and excellent service at a tremendous value," Steven A. Miron, chief executive of Bright House, said. "We think the combination with Charter gives our employees, our customers and Advance/Newhouse the strongest prospects for the future."

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Charter Communications will acquire Bright House Networks, the sixth-largest cable operator in the nation, for $10.4 billion as part of the country's media acquisition frenzy — that is if all goes as planned.
charter, bright house, cable, companies, merger
308
2015-26-31
Tuesday, 31 Mar 2015 01:26 PM
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