Cablevision Systems Corp has agreed to be purchased by European telecommunications company Altice for $17.7 billion, including debt, a source familiar with the matter told Reuters ahead of an official announcement.
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Altice chairman Patrick Drahi told a packed house at the Goldman Sachs Communacopia conference Thursday that he plans to take a European approach to the USA cable business by keeping a keen eye on costs and boosting margins. Then, buy Suddenlink, the seventh largest regional cable TV station for $9.1 billion.
In talks that began in June, Mr Drahi managed to convince Charles Dolan, the patriarch of the Irish-American family that owns Cablevision, to part with the asset it had long said it would not sell. We believe that Patrick Drahi and Altice will be truly worthy successors, and we look forward to doing all we can to affect this transition for our customers and employees. Charter Communications has also said it would be purchasing Time Warner Cable.
Now it has purchased Cablevision, a buy that will vault Altice to the No. 5 cable company in the United States.
Once consolidated, the merged Cablevision-Suddenlink entity will be the fourth largest USA cableco by subscribers, Altice claims.
Altice said it hopes to complete the deal in the first half of next year, though it remains subject to regulatory approval.
Cablevision has spun off business in recent years — including The Madison Square Garden Company in 2010, owners of the New York Knicks and New York Rangers.
The acquisition also includes Cablevision’s enterprise-focused business unit Lightpath, local television news network News 12 Networks and publishing outfit Newsday Media Group, as well as Cablevision’s advertising sales division.
The cable TV landscape in the U.S. is in for a dramatic change.
On the other hand, Cablevision will benefit from Altice’s expertise in worldwide operations, enhanced scale and further investment support, according to the press release.
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The Altice USA cable acquisition machine has fired up again and this time it’s picking up Cablevision.
