In a deal that has been in the works for some time, as we reported earlier this month, Charter Communications announced today that it has agreed to acquire Bright House Networks for $10.4 billion, The New York Times reports. The acquisition is one of a number of current deals that are changing the cable landscape.
The deal comes as Comcast’s acquisition of Time Warner Cable awaits approval, with the Charter-Bright House merger dependent on that deal going through. If Comcast-TWC gets the go-ahead, Charter will acquire some of the assets Comcast will shed.
“If Charter is not able to acquire the disposed assets from Comcast, it will not go ahead with this deal,” The Times notes.
The report notes that Bright House, which has about 2 million subscribers in Florida, Alabama, Indiana, Michigan and California, is the country’s sixth-largest cable operator. Charter is No. 4, behind Comcast, Time Warner Cable and Cox Communications.
“The structure of the deal will have Charter own 73.7 percent of a new company and Advance/Newhouse, the parent company of Bright House, own 26.3 percent,” The Times reports. “Charter will pay Advance/Newhouse a mix of $5.9 billion worth of common stock, $2.5 billion worth convertible preferred shares that pay a 6 percent coupon and $2 billion in cash.”