Broadband communications company Charter Communications has announced it will acquire Bright House Networks, the sixth largest cable operator in the US, for $10.4bn.
Charter, which is currently the country’s fourth-largest cable operator, said it will become the second largest cable operator in the states after the deal, behind Comcast-Time Warner Cable.
Last year, Charter attempted to buy Time Warner Cable but lost to Comcast. Now, Time Warner Cable and Comcast are undergoing a regulatory review of the proposed acquisition by Comcast.
Bright House serves about 2 million video customers in central Florida including Orlando and Tampa Bay as well as Alabama, Indiana, Michigan, and California.
Under a partnership, Charter will own 73.7 per cent with Bright House Network’s parent company Advance/Newhouse owning the rest.
Tom Rutledge, President and CEO of Charter Communications said, "Bright House Networks provides Charter with important operating, financial and tax benefits, as well as strategic flexibility. Bright House has built outstanding cable systems in attractive markets that are either complete, or contiguous with the New Charter footprint.”
Liberty Broadband Corporation has agreed to purchase $700m of shares of the new company upon closing of the transaction.