Charter Communications yesterday announced a $10.4B deal for Bright House Networks -- the sixth-largest cable operator in the U.S. -- in a deal that "ultimately would create the second-largest cable operator in the country behind Comcast, controlling about 10 million video subscribers," according to Steel & Gelles of the N.Y. TIMES. It is part of a "long-held strategy by Charter," backed by Liberty Media Chair John Malone’s, "to build a stronger national player that can fend off new and old rivals, keep pace with vast technical changes and provide more heft in negotiations with television groups over escalating programming costs." Charter's deal "could provide the company with more financial firepower to pursue a new round of acquisitions" (N.Y. TIMES, 4/1). REUTERS' Kumar & Roy cited analysts as saying that Mediacom, CableOne and Suddenlink now are "potential targets for Charter." The deal "will help Charter expand in Florida ... where Bright House has a strong presence" (REUTERS, 3/31). In L.A., Meg James notes this deal both "accelerates the consolidation of the cable television and Internet service landscape" and "is part of Charter's aggressive push to become an industry juggernaut" (L.A. TIMES, 4/1).
INVESTMENT OPPORTUNITY: In Philadelphia, Bob Fernandez reports Comcast CFO & Vice Chair Michael Angelakis "will resign his posts" to lead a new Comcast-controlled, $4.1B investment arm. It "would be one of the biggest funds of its kind in Pennsylvania and will be looking for high-return investments like one Comcast made into the TV shopping network QVC." Comcast said that Angelakis "would stay on" as CFO through a closing "that could happen this summer if the federal government approves it." He also is "expected to help transition to a new CFO" (PHILADELPHIA INQUIRER, 4/1).
