Charter Communications to Purchase Cable Provider Bright House for $10.4 Billion

[[Coi] Mr.CLuBBeR]

Another potential merger between cable providers

Last year, Comcast caused quite a stir when it announced that it would purchase Time Warner Cable. So far, the merge has yet to take place as Comcast is still waiting for the government to approve of the merger. But now, two more cable providers are looking to merge. Today, Charter Communications announced that it will purchase Bright House Networks for $10.4 billion in cash and stock.
Charter is the fourth biggest cable provider in the United States with 5.1 million internet subscribers and 4.3 million pay-TV subscribers. Meanwhile, Bright House is the sixth largest provider with 2.5 million customers with services located in Florida, California, Michigan, Alabama, and Indiana. The deal, if it were to go through, would make Charter the second largest cable provider in the company. However, the deal is “subject to several conditions, including Charter shareholder approval, the expiration of Time Warner Cable's right of first offer for Bright House, the close of Charter's previously-announced transactions with Comcast and regulatory approval,” according to the press release.
"Bright House Networks provides Charter with important operating, financial and tax benefits, as well as strategic flexibility,” said Charter Communications President Tom Rutledge. “Bright House has built outstanding cable systems in attractive markets that are either complete, or contiguous with the New Charter footprint. This acquisition enhances our scale, and solidifies New Charter as the second largest cable operator in the US.”
So what do you think about another merger between cable providers? Do you think the Federal Communications Commission and the US Department of Justice will approve this deal? Sound off in the comments below!
Follow Sean on Google+, Twitter, and Facebook


More...