Altice USA is a cable operator that Netherlands-based Altice Communications put together by taking over Suddenlink Communications and Cablevision. Altice USA is now making plans for Initial Public Offering (IPO), as per the sources. It is said that this move will help Altice’s founder, Patrick Drahi, to expand his cable empire in the US. IPO will offer public stock to Altice USA and the stocks can be used as currency to make more financial acquisitions.
At present, Altice USA is valued between twenty-five to thirty billion US dollars, and they are now planning to invite investment banks to offer presentations about their roles in potential IPO in New York. It is believed that Altice USA will hire IPO underwriters and may go public by 2017, depending on the market conditions. One of the reports even claimed that the IPO could go up to two billion dollars.
Altice was built into a telecoms and cable empire by Drahi via debt-heavy acquisitions in Israel and Europe. They entered the US market by acquiring Suddenlink for 9.1 billion dollars. After a few months, they extended reach to twenty states by acquiring the fourth largest cable operator of the country, Cablevision, for 17.7 billion dollars. Cablevision offers both cable and broadband services in New Jersey, New York, and Connecticut.
Altice has accumulated a debt of forty six billion Euros and having a US listing will help them to keep expanding over the US by acquiring mid-size players that Altice believe to get antitrust clearance. Taking Altice USA public will also allow other investors like Canada Pension Plan Investment Board and BC Partners Ltd to cash out in future. It seems that Drahi, who is one of the controlling shareholders of Altice, does not intend to give up the control.
Altice Communications has their operations in Belgium, Portugal, Israel, Luxembourg, Switzerland, the Dominican Republic, and the French Caribbean, other than France and United States. Altice USA offers many optimum triple play plans for their US customers.