The $17.7 billion purchase of Cablevision by Altice will likely get federal approval, New Street Research says, but meeting FCC public interest guidelines will likely drive up cost for the French telco magnet.
Facing new regulations on broadband and declining fortunes in video, the U.S. cable industry could use the fresh European perspective of Patrick Drahi, said Viacom CEO Philippe Dauman.
Cablevision CEO James Dolan is poised to collect a golden parachute of as much as $128 million amid the takeover of the cable company his family founded 42 years ago by a French telecom conglomerate.
Altice is promising to take an operator notoriously locked in an intense battle with a telco service, Verizon FiOS, in the majority of its footprint, and make it more profitable than cable companies with gobs more scale. For a U.S. cable industry trying to prove to investors it has a future, that strategy could change everything if it is successful.
Speaking to a packed Goldman Sachs Communicopia conference meeting room yesterday, just hours after his company announced a $17.7 billion agreement to buy Cablevision, Altice SA mastermind Patrick Drahi laid out his plan to drive margins as high as 50 percent with his new MSO. Drahi told analysts that he can make the company's Cablevision deal work by finding about $1 billion a year in savings and synergies.
T-Mobile US is once again the subject of M&A speculation following French telecom conglomerate Altice's $17.7 billion deal to buy Cablevision, with financial analysts suggesting T-Mobile could be in play for a cable operator.
Following up its $9.1 billion purchase of Suddenlink Communications in May with a $17.7 billion-plus-debt acquisition of Cablevision, French telecom conglomerate Altice SA has "lofty synergy expectations for its combined collection of U.S. cable assets," analysts say.
Altice has reached an agreement to acquire Cablevision for $17.7 billion, a deal that would give the service provider a larger presence in the business services market via the MSO's Lightpath division.
European telecom magnate Patrick Drahi and his Altice SA have agreed to purchase Cablevision for $17.7 billion and the assumption of debt, the New York MSO confirmed. The deal would create the fourth-largest cable operator in the United States, behind Comcast, Charter Communications and Cox Communications, and the country's seventh largest pay-TV operator. Cablevision counts around 2.8 million pay-TV customers.
Viacom has fired a salvo in long-running anti-trust litigation with Cablevision, noting that the cable company's argument in the matter has been undermined by contradictory testimony in another unrelated legal case.