Cable consolidation continues as Charter to acquire Bright House for $10.4BN
DetailsEditor | 01 April 2015
Recognising that scale is vital to survival, Charter Communications is to acquire Bright House Networks, the US's sixth largest firm of its type.
The deal is worth $10.4 billion and will see Charter gain approximately two million video customers in central Florida including Orlando and Tampa Bay, as well as Alabama, Indiana, Michigan and California.
However, the deal is subject to several conditions, including Charter shareholder approval, the expiration of Time Warner Cable's right of first offer for Bright House, the close of Charter's previously-announced transactions with Comcast and regulatory approval.
Commenting on the move, Tom Rutledge, president and CEO of Charter Communications, said: "Bright House Networks provides Charter with important operating, financial and tax benefits, as well as strategic flexibility. 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 US. I look forward to working with the Bright House team, whom we have known for years, in delivering great products and services to grow our market share."
Added Bright House CEO Steven Miron: "We are excited about our transaction with Charter. At Bright House Networks, we are very proud of what we have achieved - from the quality of our infrastructure to the level of service our employees provide to customers every day. 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. Also, our family has known and worked with Tom Rutledge for more than 20 years. Tom managed cable systems that were part of our partnership with Time Warner Cable prior to the formation of Bright House Networks. We think the combination with Charter gives our employees, our customers and Advance/Newhouse the strongest prospects for the future."