uploads///Telecom Transaction Values

Altice Completes the Acquisition of Cablevision


Dec. 2 2019, Updated 9:41 a.m. ET

Altice’s Cablevision acquisition

With the merger of Charter Communications (CHTR), Bright House Networks, and Time Warner Cable (TWC), the US cable space has consolidated even more. Plus, Altice has recently completed the acquisition of Cablevision (CVC). According to Altice, “The acquisition of Cablevision by Altice represents an enterprise value of $17.7 billion. BC Partners and CPP Investment Board hold a 30 percent stake, as previously announced.” Moreover, “Under the terms of the acquisition, Cablevision shareholders receive $34.90 in cash for each Cablevision Class A and Class B common stock.”

Article continues below advertisement

Earlier on June 16, 2016, both Altice and Cablevision accepted the conditions of the New York Public Service Commission on the deal. According to the Commission, these conditions included Cablevision having “a strong customer-service workforce by committing to no layoffs for four years.” One of the many other conditions is that “Altice will triple the speed of its network to 300 Mbps by the end of 2017.”

As of the end of 1Q16, Verizon Fios competes with Cablevision with the majority of it segments, as per Cablevision’s estimate. Note that Verizon Fios Internet speeds are between 50 Mbps to 500 Mbps, as per the telecom player.

Altice’s Suddenlink acquisition

The acquisition of Cablevision marks Altice’s second expansion in the US cable market. Earlier in December 2015, Altice had completed the acquisition of Suddenlink. The transaction value of that deal was ~$9.1 billion, according to Altice.

For diversified exposure to the top two cable companies in the US, you can consider investing in the PowerShares QQQ (QQQ). The ETF held a total of ~4.1% in Comcast (CMCSA) (CMCSK) and Charter (CHTR) as of June 22, 2016.


More From Market Realist

    • CONNECT with Market Realist
    • Link to Facebook
    • Link to Twitter
    • Link to Instagram
    • Link to Email Subscribe
    Market Realist Logo
    Do Not Sell My Personal Information

    © Copyright 2021 Market Realist. Market Realist is a registered trademark. All Rights Reserved. People may receive compensation for some links to products and services on this website. Offers may be subject to change without notice.