Charter Communications Buys Bright House Networks
By Space Coast Daily // April 1, 2015
$10.4 billion in cash and stock transaction
Charter Communications, the nation’s fourth-largest cable operator, has agreed to acquire Bright House Networks for $10.4 billion in cash and stock, the companies announced on Tuesday.
Bright House is the sixth largest cable operator in the country, and in addition to serving Brevard County, has two million customers in central Florida and Tampa, Alabama, Indiana, Michigan and California.
The deal, once closed, will create the second-largest cable company in the United States.
“Bright House Networks provides Charter with important operating, financial and tax benefits, as well as strategic flexibility,” said Charter CEO Tom Rutledge in a statement issued on Tuesday.
“Bright House has built outstanding cable systems in attractive markets that are either complete, or contiguous with the New Charter footprint.”
The deal is subject to shareholder and regulatory approval.
If the deal is approved, Charter will own 73.7 percent of the new business and Bright House’s parent company Advance/Newhouse will own 26.3 percent.
Charter is using primarily stock to finance the deal, and said it would also put up $2 billion in cash.