The Wall Street community has reacted positively to Charter Communications' decision to pursue a $10.4 billion purchase of Bright House Networks, sending the MSO's stock up 5.3 percent as of the close of the Nasdaq Tuesday.
Making the rumors a reality, Charter Communications said it plans to buy rival MSO Bright House Networks for $10.4 billion. It's unclear how such the deal might affect the wireless industry, but both companies are players in various wireless initiatives.
Charter Communications' proposed $10.4 billion purchase of Bright House Networks augments its position in the business services market, which is currently dominated by Comcast and Time Warner Cable. With the deal, and its associated Ethernet footprint that includes 18,000 miles of fiber, Charter increases its scale across business services in a number of key vertical industry segments, including healthcare, hospitality, government and education.
Charter Communications says its $10.4 billion purchase of Bright House Networks will help it assimilate Time Warner Cable systems acquired via the complex, three-way GreatLand Connections deal.
Charter Communications is increasing its stake in the business services market by purchasing Orlando, Fla.-based Bright House Networks for $10.4 billion, a deal that will help it better compete against business rivals Comcast, Cox and Time Warner Cable.
Charter Communications announced it plans to purchase Bright House Networks for $10.4 billion. The deal, which had been rumored in reports earlier this month, would combine the nation's sixth and fourth largest cable operators into a company that Charter said would be the second-largest cable operator in the United States.
Charter Communications CEO Tom Rutledge saw his compensation nearly quadruple to $16.1 million in 2014, up from $4.5 million the year before, according to Securities Exchange Commission filings.
Even as the FCC continues to review the Comcast and Time Warner Cable mega-merger, a report has emerged that Charter Communications is looking to make a deal to acquire Bright House Networks.
The Wall Street community reacted well to a report that Charter Communications is in talks to buy Bright House Networks, with Charter's stock ending Thursday trading on the Nasdaq up nearly 6 percent.
Charter Communications has quietly been in talks with billionaire Si Newhouse Jr. for months about buying Bright House Networks, according to Bloomberg.