Altice, a Netherlands-based telecommunications company, landed a deal to purchase Cablevision, a cable television company providing service to areas surrounding New York City, for $17.7 billion, including debts.
The deal, which is subject to regulatory approval and is expected to face a rigid scrutiny, will be making Altice the 4th largest cable operator in the United States, The New York Times reported.
The company entered the U.S. market by agreeing to acquire Suddenlink Communications, which is based in St. Louis, in May for $9.1 billion.
In a statement released, Thursday, Altice said that the deal is expected to close in the first half of 2016. According to the report of CNBC, the company will pay Cablevision $34.90 per share — a 22 percent premium to the company's Wednesday stock.
The report additionally stated that during Patrick Drahi's, Chief Executive of Altice, interview with the Wall Street Journal, where he said that wanted to take the quadruple play offer — including TV, mobile, fixed telephone lines and high-speed broadband — to the United States.
"My vision is to do the same in the U.S., but bigger," Drahi said.
Altice has a $27.1 billion market capitalization, according to Markey Watch. The company is known and has built a reputation as an aggressive deal-maker and cost-cutter.
The deal with Altice will value Cablevision, which has a market value of $7.9 billion, at roughly $18 billion including the debt load. Cablevision's stock reportedly rose 16 percent in after-hours trading upon the report of a possible deal.
Altice reportedly made a major step towards becoming a major player in media and telecommunications business in the United States by acquiring Cablevision.
It is the 5th largest cable company and 8th largest provider of pay-TV services in the U.S., with approximately 3.1 million subscribers. The company generated a revenue of $6.5 billion in 2014, with a net income of $311 million.
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