Cablevision Systems Corp., the Bethpage-based cable and internet provider, was acquired by European telecom company Altice Group Wednesday for $17.7B.
The acquisition makes Altice, based in the Netherlands, the fourth-largest cable provider in the U.S., the company said. Altice will acquire Lightpath, Cablevision’s business unit; News 12 Networks; Newsday Media Group; and Cablevision Media Sales, the company’s advertising sales division, in the deal.
Cablevision will continue to operate AMC Networks and The Madison Square Garden Company, which owns the New York Knicks, New York Rangers and Madison Square Garden.
Cablevision CEO James L. Dolan said Thursday he believed now was the right time to sell Cablevision after it was founded by his father, Charles Dolan, more than four decades ago.
“The time if right for new ownership of Cablevision and its considerable assets,” Dolan said. “We believe that [Altice President] Patrick Drahi and Altice will be truly worthy successors, and we look forward to doing all we can to affect this transition for our customers and employees. We expect that Cablevision will be in excellent hands.”
As part of the deal, Cablevision has agreed that it will not pay any quarterly dividends from now until closing. The deal is expected to close in the first half of 2016.
“The strategy of Altice in the large and highly strategic U.S. market is reinforced with the acquisition of Cablevision,” Drahi said. “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.”
Altice advised Cablevision that up to $5.8 billion of Cablevision and CSC Holdings debt will remain outstanding after the transaction is completed.
