Altice completed its previously announced acquisition of Cablevision Systems, the leading MSO in the NY metro region.
Cablevision together with Suddenlink will form Altice USA, the #4 cable operator in the U.S., which serves more than 4.6 million Optimum and Suddenlink customers across 20 states. The deal was valued at $17.7 billion. BC Partners and CPP Investment Board hold a 30 percent stake, as previously announced.
Altice outlined a number of plans, including to:
- Significantly increase broadband speeds through extensive investments in network upgrades and improvements;
- Introduce a low-income broadband offering;
- Introduce a state-of-the art and fully evolutive, all-in-one home center that integrates the functionality of set top boxes, routers and Wifi modems in one device and provides a more user-friendly experience;
- Introduce a next-generation customer interface offering a modern, informative and seamless navigation, integrating video on demand, online content, and advanced navigation and recommendation tools to maximize the consumer’s experience;
- Invest more into and support the WiFi network, which will further extend the reach of broadband offerings;
- Upgrade existing and invest into new IT systems to optimize processes and better serve customers; and
- Inspire the next generation of technology leaders through programs that encourage the pursuit of STEM-related career paths.
Patrick Drahi, Founder and Controlling Shareholder of Altice: “The completion of the Cablevision acquisition marks a critical step in the development of the Altice Group. Altice USA is a key pillar of our business and a powerful and dynamic growth platform. We are very excited about our U.S. business and the opportunities we see in this market. We will accelerate network investments and bring innovative products and services to U.S. customers by leveraging our global operational expertise, scale and resources. I wish to also thank the Dolan family for entrusting us with their life’s work at Cablevision, where they have developed under their pioneering stewardship one of America’s pre-eminent cable operations with best-in-class management talent.”
Cablevision serves the New York City metropolitan area, passing more than 5 million premises and serving more than 3.1 million residential and business customers. With approximately 65% of its cable customers subscribing to triple-play services, Cablevision generates industry-leading ARPU and benefits from high customer loyalty. The deal also includes Lightpath, the company’s business services unit, as well as local news operations.
Earlier this year, Altice announced plans to acquire Suddenlink for $9 billion, a cable operator based in St. Louis with 1.4 million subscribers in 17 states. The combination of Cablevision + Suddenlink will make Altice the fourth largest cable operator in the U.S. with 4.6 million customers in 20 states.
“As a family business 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. The strategy of Altice in the large and highly strategic US market is reinforced with the acquisition of Cablevision. We will be in a stronger position, as in all other markets in which we operate, to deliver the best services, invest in the most advanced technology, and develop innovative products for the benefit of our customers,” stated Patrick Drahi, Founder and President of Altice.
- Cablevision was founded in the 1960s by Charles Dolan.
- In 2014, Altice acquire SFR from Vivendi, combining it with Numericable, which has over 5.2 million fiber homes in France, with more than 10 million homes passed. SFR has 3G/4G mobile networks in France as well as 1.6 million fiber homes.
- In June 2015, Altice acquired Portugal Telecom.