Charter throws Bright House party; USD10.4bn takeover agreed

1 Apr 2015

US cable giant Charter Communications and its subsidiary CCH I (collectively known as, the ‘New Charter’ or ‘Charter’) and Advance/Newhouse Partnership (the parent company of smaller rival Bright House Networks) have reached a definitive agreement whereby Charter will acquire Bright House for USD10.4 billion. The business will be conducted through a partnership in which Charter will own 73.7%, and Advance/Newhouse, 26.3%.

The consideration to be paid to Advance/Newhouse by New Charter will include common and convertible preferred units in the partnership, in addition to USD2 billion in cash. The partnership units owned by Advance/Newhouse will be exchangeable for common shares of New Charter. The deal is subject to several conditions, including Charter shareholder approval, the expiration of Time Warner Cable’s (TWC’s) right of first offer for Bright House, the closure of Charter’s previously-announced transactions with Comcast and regulatory approval from the Federal Communications Commission (FCC).

Bright House is the sixth largest cable operator in the United States, and serves approximately two million video customers in central Florida including Orlando and Tampa Bay, as well as Alabama, Indiana, Michigan, and California.

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