Altice to acquire Cablevision for $17.7MN
| 18 September 2015
European telecoms giant Altice has made a play for US significance with plans to acquire Cablevision, the No 4 cable MSO in the States.
The Cablevision network passes over five million homes and serves 3.1 million homes and businesses. About 65% of customers subscribe to triple-play services.
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.
Cablevision generated $6.525 billion in revenue and US$1.858 billion in operating cash flow in the year to June.
The news follows an agreement by the Dutch company to acquire a 70% interest in US cable firm Suddenlink Communications in a deal valued at $9.1 billion.
Suddenlink has around 1.5 million customers in about a dozen states, including Texas, Louisiana, Arkansas, West Virginia, Oklahoma and Arizona. According to Suddenlink chairman and CEO Jerry Kent, the deal will form the kernel of a new cable force in the American market that will grow by acquisition.
That deal gave Altice more scale with which to woo the much bigger Cablevision.
"We are ... highly committed to continue to improve network investment, customer offers and service innovation in the attractive US market," Altice CEO Dexter Goei said at the time. "Our investment in Suddenlink, our first in the cable sector in the US, opens an attractive industrial and strategic avenue for Altice in the US, one of the largest and fastest growing communications markets in the world."