Back to top
Unique Zacks Analysis of Your Chosen Ticker
Pick one free report - opportunity may be withdrawn at any time
Netflix, Inc. (NFLX) - $25 value - yours FREE >>
Charter Communications, Inc. (CHTR) - $25 value - yours FREE >>
We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Netflix, Inc. (NFLX) - $25 value - yours FREE >>
Charter Communications, Inc. (CHTR) - $25 value - yours FREE >>
Image: Bigstock
Altice-Cablevision Merger Crosses Final Regulatory Hurdle
European telecom group, Altice SA has final overcome the last regulatory with the New York Public Service Commission’s (PSC) nod for its acquisition of U.S. cable provider Cablevision Systems Corporation . Last September, Altice inked a deal to purchase Cablevision for $17.7 billion, which is expected to close in the second quarter of 2016. Interestingly, Altice had also been looking to take over Time Warner Cable Inc. at the time, but eventually lost out to a higher bid by Charter Communications, Inc. (CHTR - Free Report) .
High Hopes for Altice
Altice has recently been on an acquisition spree with focus on the U.S. cable companies. This strategy is in line with the European company’s objectives of cross-border expansion. In May, Altice entered the U.S. market through its buyout of cable operator Suddenlink Communications in a deal valued at $9.1 billion. Upon the successful completion of the Cablevision deal, Altice stands to become the fourth largest cable operator in the U.S. The company also expects to derive cost synergies of $900 million on an annualized basis post completion. Cablevision currently has a subscriber base of 3.1 million, spread mostly across New York, New Jersey and Connecticut. Altice had previously hinted at its plans of making a number of acquisitions in the U.S. in order to garner around 50% of its total revenue from the country.
The Bottom Line
The U.S. cable TV industry has been witnessing considerable downturn over the last six years. Bundled triple-play services by telecom operators and the evolution of Over the Top (OTT) video service providers like Netflix Inc. (NFLX - Free Report) pose significant challenge to traditional video service providers. Moreover, the recent merger between Charter Communications and Time Warner is bound to induce competition within the cable Multi Service Operators (MSO). Given this scenario, it is yet to be seen how Altice benefits from its acquisition of Cablevision.
Cablevision currently sports a Zacks Rank #1 (Strong Buy).
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report >>