US cableco Charter Communications is reportedly negotiating the all-stock acquisition of Bright House Networks, the sixth-largest cable operator.
According to a Bloomberg report, talks have being going on for months, but a deal is unlikely to close…
US cableco Charter Communications is reportedly negotiating the all-stock acquisition of Bright House Networks, the sixth-largest cable operator.
According to a Bloomberg report, talks have being going on for months, but a deal is unlikely to close before the FCC clears Comcast’s planned takeover of smaller rival Time Warner Cable (TWC).
Charter’s acquisition rumours might suggest that the Comcast-TWC deal, which has been under regulatory scrutiny for more than a year, is nearing approval.
A spokesperson for Charter, which had unsuccessfully bid for TWC last year, declined to comment, while Bright House did not reply to a request for comment. However, Reuters quoted a Bright House spokeswoman acknowledging that the company had held conversations with many parties about a potential sale, but has not reached any agreement.
The US$45bn Comcast-TWC deal was first announced in February 2014. After being outbid by Comcast, Charter, whose controlling shareholder is John Malone’s Liberty Media, agreed to contribute users to a new operator, GreatLand Connections, set to be hived off from Comcast.
The merger has faced criticism from a number of industry players, including satellite operator Dish Network, which expressed concerns that the transaction would lead to reduced competition in the TV and internet markets.
Analysts said that the FCC’s recently announced net neutrality rules were unlikely to impact this deal.
Bright House Networks, which is owned by the Newhouse family, offers video, high-speed data, home security and automation and voice services to approximately 2.5 million subscribers, with an established presence in Florida, Alabama, Indiana, Michigan and California.
