The future looks Bright for Charter; cableco duo in secret talks over USD12bn deal

13 Mar 2015

Charter Communications has reportedly staged acquisition talks with billionaire Si Newhouse Jr, whose Advance Publications unit owns Bright House Networks – the US’s second largest privately held cableco, behind Cox Communications. According to Bloomberg, which cites unnamed sources familiar with the negotiations, the all-stock deal is likely to be valued at around USD12 billion.

Bright House would arguably represent a consolation prize for Charter after it missed out on securing a takeover deal for Time Warner Cable (TWC) last year. Charter was outbid by larger rival Comcast, but managed to negotiate a third-party role in the USD45.2 billion Comcast-TWC ‘mega-merger’, in the form of a minor stake in Greatland Connections, a spinoff venture designed to eliminate network overlap following the deal. Charter will also directly acquire 1.4 million TWC customers for USD7.3 billion as part of the larger deal.

United States, Bright House Networks (Spectrum), Charter Communications (Spectrum, incl. Spectrum Mobile)