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Cablevision Acquired For $17.7 Billion By French Telecom Giant Altice!

Posted by: on Sep 17, 2015 | No Comments

The rumors and speculation started a few hours ago that the French giant telecom Altice had aspirations to acquire US cable company Cablevision (CVC). The speculation is no more, because Cablevision has agreed to sell itself to Altice for a whopping $17.7 billion, and this includes Cablevision debt as well. An announcement was made according to CNN Money on the acquisition. The primary story was broke by the New York Times yesterday.


“Cablevision-hq” by Americasroof – Own work. Licensed under CC BY-SA 3.0 via Commons –

According to CNN Money website, The companies said Thursday that Altice had agreed to pay $34.90 a share for Cablevision, making the deal worth $17.7 billion including debt. The price represents a 22% premium over Cablevision’s closing price Wednesday. Similar to the deal by Charter Communications, a cable operator with ties to the billionaire John C. Malone, has already agreed to buy Time Warner Cable after its archrival Comcast failed to complete a deal. AT&T recently completed a $48.5 billion takeover of the satellite television operator DirecTV.

Altice is headed by French-Israeli billionaire Patrick Drahi. Mr. Drahi intentions is to establish cable operations in the USA. Initially the striking a deal $9.1 billion deal with Suddenlink Communications this spring. In the deal Altice will get Cablevision and its 3.1 million customers, which would let the European telecom leap into the top echelon of cable companies in the United States, behind only the likes of Comcast and Charter. Under the terms of the agreement, Altice will pay $34.90 a share in cash, 22 percent higher than Cablevision’s closing stock price on Wednesday which was $28.54. That represents an equity value of $17.7 billion. To help finance the takeover, Altice will sell additional shares in itself ($3.3 billion), with some additional financing coming from Cablevision cash, debt and drawing on financing from three major banks. The two investors that retain a minority stake in Suddenlink, BC Partners and the Canada Pension Plan Investment Board, may buy 30 percent of Cablevision’s equity as part of the transaction.

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