Charter Communications snaps up rival Bright House Networks for $10.4bn

The deal will be conducted through a partnership of which Charter will own 73.7%, and of which Bright House’s parent company, Advance Newhouse, will own 26.3%.

The consideration to be paid to Advance Newhouse by Charter will include common and convertible preferred units in the Partnership, in addition to $2bn in cash.

Bright House is the sixth largest cable operator in the States, and serves approximately 2m video customers in central Florida including Orlando and Tampa Bay, as well as Alabama, Indiana, Michigan, and California.

The deal is subject to several conditions, including Charter shareholder approval, the expiration of Time Warner Cable's right of first offer for Bright House, the close of Charter's previously-announced transactions with Comcast and regulatory approval.

Charter, whose key markets include Alabama, Georgia, Michigan and California, lack presence in Florida. The deal comes after Charter and its largest shareholder, Liberty Broadband, have discussed consolidation in the industry.

This deal also follows Charter’s failed bid for Time Warner Cable last year before Comcast trumped it with a $45.2bn offer.

Goldman Sachs and LionTree Advisors are financial advisers to Charter and UBS Investment Bank is adviser to Advance Newhouse. Wachtell, Lipton, Rosen & Katz is the legal adviser to Charter.