Charter Communications and Bright House Networks’ (BHN) parent company Advance/Newhouse said they “remain committed to completing their previously announced transaction on the same economic and governance terms.”
The two have extended their renegotiation period an additional thirty days to finish the deal, which would be worth $10.4 billion.
BHN CEO Steven Miron said, “We continue to be excited about the transaction with Charter. We believe this combination positions the new company to become an industry consolidator and growth platform to develop innovative products in serving customers, growing market share and creating value for shareholders.”
The acquisition was contingent on Comcast’s merger with Time Warner Cable. When that deal fell through late last month due to opposition from both the DOJ and FCC, a thirty day renegotiation period was set.
Last week Charter began meeting with banks to amass a debt package between $25 billion and $30 billion in order to bolster its position to acquire BHN, or Time Warner Cable (TWC), or both.
Charter and BHN announced their deal in early March.
People affiliated with Charter have said a deal with TWC remains possible.
The failed merger between Comcast and TWC leaves Charter the opportunity to resubmit an offer to TWC.
Charter’s initial offer to TWC of $132.50 per share was rejected as TWC wanted $160 per share, and $100 cash. Incidentally Comcast won the bidding with an offer of $159 per share.
It is possible that Charter could raise their offer to $170 – $180 per share. Liberty Media, partial-owner of Charter, disclosed in a conference call that several potential partners are willing to invest with Liberty if Charter needs additional funds to finance the deal.
President and CEO of Charter Tom Rutledge said in regards to the BHN deal, “We look forward to completing the transaction as planned, and our teams are working together to make that happen.”
Charter is the fourth largest cable operator in the U.S., and BHN is the sixth.
