Home / Business / UPDATE 2-Charter Communications to buy Bright House in $10.4 bln deal

UPDATE 2-Charter Communications to buy Bright House in $10.4 bln deal

(Adds sum from Liberty Broadband statement, background,
updates shares)

By Devika Krishna Kumar and Abhirup Roy

March 31 (Reuters) – Charter Communications Inc
said it would buy Bright House Networks in a $10.4 billion deal
as it seeks to enhance a wire network after losing out to
Comcast Corp in a quarrel for Time Warner Cable Inc
final year.

The wire attention has been fast consolidating in recent
years in a bid to opposite a flourishing recognition of satellite TV
and Web-based entrants such as Netflix Inc.

Comcast’s $45.2 billion offer for Time Warner Cable, if
approved, will concrete a No. 1 position in a attention and
reshape a country’s compensate TV and broadband markets.

With Charter looking to tighten a opening with Comcast, the
Bright House understanding could be a initial in a array of

Analysts have cited wire TV providers Mediacom and
Suddenlink as intensity takeover targets for Charter.

Charter’s shares rose as most as 8.5 percent on Tuesday.

The association pronounced it would compensate Advance Newhouse – a owner
of Bright House – $2 billion in money and a rest in common and
convertible elite units of a newly combined partnership
created for a deal.

The understanding will assistance Charter enhance in Florida, a marketplace where
Bright House has a clever presence. Charter’s pivotal markets
include Alabama, Georgia, Michigan and California.

Liberty Broadband Corp, Charter’s largest
shareholder with a 26.1 percent stake, pronounced it would buy $700
million of newly released shares of Charter.

Following a deal, Advance Newhouse would expected possess 26.3
percent in Charter and Liberty Broadband’s equity ownership
would trip to 19.4 percent.

Charter’s understanding for Bright House is fortuitous on the
expiration of Time Warner Cable’s “right of initial offer” for
Bright House, a companies said.

Bright House has an handling agreement in place with Time
Warner Cable that allows it to share record and programming
rates with a incomparable wire operator.

Charter Chief Executive Tom Rutledge has famous a Newhouse
family for over dual decades and managed wire systems that were
part of a partnership with Time Warner Cable before Bright
House Networks was formed.

Goldman Sachs and LionTree Advisors are financial advisers
to Charter and UBS Investment Bank is confidant to Advance
Newhouse. Wachtell, Lipton, Rosen Katz is a authorised confidant to

Charter’s shares were adult 8 percent during $198.35 in morning

(Editing by Kirti Pandey and Saumyadeb Chakrabarty)


About admin

Leave a Reply

Your email address will not be published. Required fields are marked *