Charter to Buy Bright House in $10 Billion Deal

Offices of Charter Communications in St. Louis. (Jeff Roberson/Associated Press)
Offices of Charter Communications in St. Louis. (Jeff Roberson/Associated Press)

Charter Communications said Tuesday that it had agreed to acquire Bright House Networks for $10.4 billion, in the latest consolidation of cable television operators to reshape the media landscape.

The deal will further enlarge Charter, which is involved in the huge merger of Comcast and Time Warner Cable, the two biggest cable operators in the country. If that deal is approved, Charter will acquire some markets and subscribers from the enlarged Comcast.

But much hinges on the approval of Comcast’s acquisition of Time Warner Cable, including Charter’s acquisition of Bright House. If Charter is not able to acquire the disposed assets from Comcast, it will not go ahead with this deal.

Bright House is the sixth-largest cable operator in the country, with about two million subscribers in Florida, Alabama, Indiana, Michigan and California.

The structure of the deal will have Charter own 73.7 percent of a new company and Advance/Newhouse, the parent company of Bright House, own 26.3 percent. Charter will pay Advance/Newhouse a mix of $5.9 billion worth of common stock, $2.5 billion worth convertible preferred shares that pay a 6 percent coupon and $2 billion in cash.

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