Are you ready for more consolidation in the world of cable TV? Today, Bloomberg reported that Spectrum’s parent company, Charter Communications, was in the early stages of working with financial advisors to buy Altice USA, the parent company of Optimum cable TV.
Charger Communications is the largest cable TV provider in the United States when looking at subscribers. Altice USA is the fourth largest with its Optimum Cable TV brand. Combining them would make Charter Communications into a massive super house within the world of TV and internet services in the United States.
Details are still very thin, and the talks are reportedly in the early stages. According to the report, Charter Communications is still in the early stages of securing the needed funding for the deal.
If this deal goes forward, it would likely face close review by governmental agencies that may try to block the deal.
Optimum has been bleeding customers at an alarming rate even as it lost money in recent months. The company reported fourth-quarter 2023 results that showed subscribers were dropping cable TV, broadband, and phone services. For the fourth-quarter, it lost 27,000 internet subscribers, 62,200 cable TV subscribers, and 57,400 phone subscribers. For the year, those totals are even worse, with losses of 114,000, 266,700, and 248,900, respectively. Overall, Altice USA lost $117.8 million, or 26 cents a share, while revenue fell 2.9% to $2.3 billion.
This sharp drop in subscribers for both TV and the internet may make the company a prime target for takeover right now by Charter Communications. For now, we will have to wait and see what happens.
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