Altice, the European media giant lead by French billionaire Patrick Drahi, is buying Cablevision in the company’s latest attempt to break into the U.S. market. The deal will create the fourth largest cable operator in the country.
Cablevision is the top cable operator in the New York metropolitan area and also operates the Long Island paper Newsday and the free daily paper amNewYork. Both papers are included in the deal.
The Wall Street Journal reports that Altice agreed to buy Cablevision for around $10 billion. The deal comes just four months after Altice took its first step into the U.S. market by buying Suddenlink for $9 billion.
Cablevision is sort of a consolation prize for Drahi, as the WSJ notes that he had considered buying a much bigger fish: Time Warner Cable. However, Charter Communications beat him to the punch, acquiring TWC for $55 billion. That deal is still pending. Ultimately, Drahi decided that buying TWC would be too big a sudden leap for his company in the U.S.
“As a family business we are proud to be entrusted by the Dolan family with the ownership of Cablevision and look forward to continuing the pioneering path they have paved for us,” Drahi said in a statement. “The strategy of Altice in the large and highly strategic US market is reinforced with the acquisition of Cablevision. We will be in a stronger position, as in all other markets in which we operate, to deliver the best services, invest in the most advanced technology, and develop innovative products for the benefit of our customers.”
The Dolan family was the longtime owners of Cablevision. According to the New York Times, the family’s ownership of Madison Square Garden, the New York Knicks, New York Rangers and AMC Networks will not change.
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