Altice USA Shares Spike 36% On Charter’s Acquisition Considerations

(CTN News) – Following a report that Charter Communications is considering purchasing Altice USA, shares of Altice USA rose 36% on Monday following the news that Charter is considering buying the company.

According to reports citing sources with knowledge of the matter, Charter is trying to determine whether the acquisition of Altice USA makes sense, and has been working with financial advisors to establish whether the deal makes sense to carry out.

According to a person familiar with the matter, Altice has not been contacted by Charter to discuss a possible acquisition, according to a person familiar with the matter.

On Monday, the bigger company’s shares fell about 2% in value.

A representative of Charter nor USA was not able to be reached for comment about the report. As far as the report is concerned,

Charter and Altice USA declined to comment on it.

There is no doubt that this deal would bring significant consolidation at a time when major communications companies are struggling to retain their broadband and cable subscribers. The shares of USA had plunged more than 40% so far this year before they climbed on Monday, whereas Charter’s stock has fallen about 25% so far this year.

Altice USA owns a range of brands under the Optimum brand, which is a broadband, TV and phone company. There are approximately five million customers who use the service provided by the company.

In terms of broadband and cable subscriptions, Charter easily surpasses its size with more than 32 million subscribers.

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