New York--Charter Communications will pay $10.4 billion for Florida carrier Bright House Networks, in a deal that will establish Charter as the second-largest US cable operator, the two companies announced Tuesday.
Charter, which serves about six million customers with cable, broadband and telephone services in 28 states, said the takeover of the sixth-ranked cable firm Bright House will bring it an additional two million customers in central Florida as well as four other states.
In the cash-plus-shares deal, Charter will former a partnership with Bright House parent Advance/Newhouse Partnership which Charter will control with a 73.7 percent stake.
"Bright House has built outstanding cable systems in attractive markets that are either complete, or contiguous with the New Charter footprint," said Tom Rutledge, Charter president and chief executive, in a statement.
"This acquisition enhances our scale, and solidifies New Charter as the second-largest cable operator in the US."
Bright House chief executive Steven Miron said the merger will benefit from his family having "known and worked with Tom Rutledge for years."
"We think the combination with Charter gives our employees, our customers and Advance/Newhouse the strongest prospects for the future."
The merger comes as the US cable TV industry is girding for a challenge from "cord cutters" giving up high-priced cable TV packages for streaming video subscriptions, and a younger generation completely skipping cable for streaming via portable devices.
Shares in Charter jumped 7.8 percent to $197.74 in early-morning trade.
AFP
