An official announcement is expected today.
As part of the deal, BC Partners and the Canada Pension Plan Investment Board, the minority stake holders of Suddenlink , may buy 30 percent of Cablevision’s equity, AP and Reuters reported today. Suddenlink is owned by Netherlands-based Altice.
The strategy of Altice is to expand in the U.S. cable market in a big way. Altice revenue fell 2 percent to € 3,906 million in the second quarter of 2015.
Altice’s recent initiatives
# Closed acquisition of Vivendi’s 20% stake in Numericable-SFR in May
# Signed agreement to acquire a 70% stake in Suddenlink
# Acquired Portugal Telecom in June
# Regulatory disposals of Cabovisao & Oni under way
# EGM to create Altice NV and adopt dual class share capital structure
# Acquired stake in NextRadioTV
The US cable market is facing consolidation.
Charter Communications, supported by cable pioneer John Malone, is trying to buy Time Warner Cable and Bright House for $67.1 billion.
Earlier, Comcast, which announced its enterprise focus, tried to purchase Time Warner Cable. But it dropped the acquisition plan because of regulatory setbacks.
In another deal, American wireless major AT&T in July acquired satellite TV company DirecTV for $48.5 billion to become the largest U.S. pay-TV company.
Altice, controlled by founder Patrick Drahi, has expanded from a small regional Internet and cable provider in France’s Alsace region to making an $18.5 billion acquisition last year of France’s No. 2 mobile phone operator, SFR.
Earlier this year, Altice held preliminary talks with Time Warner Cable about a possible deal. Altice CEO Dexter Goei earlier said that the European cable company is aiming for half of its portfolio to be U.S. business.
In May, Altice announced a $9.1 billion deal to buy Suddenlink, the seventh largest U.S. cable company based in St. Louis, from private equity investors.