Telecom Giant Nabs Cablevision in $18B Deal

Cablevision is one of the largest cable providers in the US with 3.1 million residential and business customers. As part of the acquisition, Altice would also getting Cablevision-owned newspapers Newsday and amNewYork.

Altice said it hopes to complete the Cablevision deal in the first half of next year, though it remains subject to regulatory approval.

Altice already runs big mobile and cable divisions in countries such asSwitzerland and France, and is popular for aggressively reducing costs to hike profitability in the companies it buys.

Dolan said Thursday he believed now was the right time to sell Cablevision after it was founded by his father, Charles Dolan, more than four decades ago. Cablevision has agreed that it would not pay any quarterly dividends from now to closing.

“The acquisition of Cablevision represents Altice’s next step in the US market following the announced acquisition of Suddenlink earlier this year”.

“We are proud to be entrusted by the Dolan family with the ownership of Cablevision and look forward to continuing the pioneering path they have paved for us”, Drahi added.

But the takeover of Cablevision – one of the last trophies of the USAcable industry and the longtime province of its founding family, the Dolans – could also draw significant concerns from regulators, particularly as control of the telecom market shrinks to fewer and fewer players.

“We are… highly committed to continue to improve network investment, customer offers and service innovation in the attractive US market”, Altice CEO Dexter Goei said at the time.

Early this month Wunderlich Securities Matthew Harrigan said that Cablevision “could be a very appealing asset” for Altice given its presence in New York, and ambitious plans to spread public WiFi services through the region. According to the New York Times, the family’s ownership of Madison Square Garden, the New York Knicks, New York Rangers and AMC Networks will not change.

Started in 2002, Altice provides broadband Internet and TV to France, Israel, Belgium, Luxembourg, Portugal, French West Indies/Indian Ocean Area and, the Dominican Republic and Switzerland.