Charter Communications isn’t relying solely on the Comcast/Time Warner merger deal to grow its subscriber base.
Charter, the fourth largest cable operator, today announced an agreement to buy Bright House Networks in a deal valued at about $10.4 billion.
Bright House is the sixth largest cable operator in the United States, and with 2 million video customers in Alabama, California, Florida, Indiana and Michigan.
Charter Communications is slated to acquire some of the cable systems that Comcast/Time Warner would have to spin off when those two entities merge. There are a series of conditions connected to the Comcast/TWC merger that need to be resolved for the Charter/Bright House deal to go through. That Charter is willing to tee up this deal with Bright House is an indication that they have some confidence the Comcast/TWC merger will be approved.
The Charter/Bright House deal is contingent on the expiration of Time Warner Cable’s right of first offer for Bright House, the close of Charter’s previously-announced deal to buy systems spun off in the Comcast/TWC merger, regulatory approval and approval by shareholders.