France-based European cable operator, Altice, Thursday announced that it would acquire the fourth-largest cable company in the US, Cablevision for $17.7 billion, including debt. Altice offers cable-based services including pay TV, broadband and fixed lines in several European countries.
The French giant which is controlled by billionaire Patrick Drahi, said that the deal is expected to close in the first half of 2016 and will be financed by a combination of a $14.5 billion share issue, $3.3 billion in cash and cash on hand in Cablevision.
The acquisition of Cablevision represents Altice’s next step in the US market following the announced acquisition of Suddenlink earlier this year. Together both operators represent the 4th largest cable operation in the US market.
For Altice to reach cost cut goals, it will have to trim 30% of Cablevision's non-programming costs. Not easy. $CVC http://t.co/bTgJIJ6si7
— Miriam Gottfried (@miriamgottfried) September 17, 2015
Cablevision major market, the New York metropolitan area (New York, New Jersey, Connecticut) represents the most attractive US cable market characterized by affluence and population density. With a network passing more than 5 million premises, Cablevision serves more than 3.1 million residential and business customers. With approximately 65% of its cable customers subscribing to triple-play services, Cablevision generates industry-leading ARPU and benefits from high customer loyalty.
Patrick Drahi, Founder and President of Altice
As a family business we are proud to be entrusted by the Dolan family with the ownership of Cablevision and look forward to continuing the pioneering path they have paved for us. The strategy of Altice in the large and highly strategic US market is reinforced with the acquisition of Cablevision.
