Charter Communications (NASDAQ:CHTR) and its subsidiary, CCH I (together, the "New Charter") and Advance/Newhouse Partnership (the parent company of Bright House Networks) have reached a definitive agreement whereby Charter will acquire Bright House Networks for $10.4 billion. Bright House is the sixth largest cable operator in the United States and serves approximately 2 million video customers in central Florida including Orlando and Tampa Bay, as well as Alabama, Indiana, Michigan and California.
The business will be conducted through a partnership of which Charter will own 73.7%, and of which Advance/Newhouse will own 26.3%. The deal is subject to several conditions, including Charter shareholder approval, the expiration of Time Warner Cable's (NYSE:TWC) right of first offer for Bright House, the close of Charter's previously announced transactions with Comcast (NASDAQ:CMCSA) and regulatory approval.
Also as part of the deal, Liberty Broadband (NASDAQ:LBTYA), which is Charter's largest shareholder, will buy $700 million in New Charter stock for a 19.01% equity interest.