What: Telecom Giant Altice has acquired Cablevision in a US$9 billion deal.
Why it matters: Altice will inherit 2.78 million broadband customers and 2.64 million pay-TV customers on Long Island and around the New York metro area.The deal includes the Long Island tabloid Newsday and local Channel 12.
The deal also includes the Long Island tabloid Newsday and local Channel 12.
Following this deal, Altice will inherit 2.78 million broadband customers and 2.64 million pay-TV customers on Long Island and around the New York metro area.It will also gain control of the 400,000 circulation newspaper and the seven regional Channel 12 cable news networks.
Cablevision was founded in 1973 by Dolan family patriarch Charles Dolan.The company took control of Madison Square Garden and its Knicks and Rangers sports teams in 1997 before spinning them off into a separate company in 2010.Today,Cablevision is valued in US$$7.9 billion. Over the past 12 months, Cablevision has increased its stock price by 48 percent, and is up 38.3 percent year-to-date.
The cable industry has been consolidating for years — and Cablevision, like many other pay-TV outfits, has been the subject of many sale rumors in recent years.
But now, Charles Dolan has retired and James busy is serving as the executive chairman of MSG and on the board of family-controlled AMC Networks, so maybe is right for the family to sell one of the pieces of its sports, media and entertainment empire.
Altice’s owner is part of a wider effort by the company to expand its US holdings.In May, telecom giant acquired a 70 percent stake in St Louis-based Suddenlink — a deal that valued the Midwest cable company, with about 1 million subscribers, at US$9.1 billion.