Altice USA is trying to wring out 900 million dollars in cost saving in the coming years in their US cable asset that was previously known as Cablevision. Altice USA Chief Executive, Dexter Goei, reportedly paid thirty-one million dollars for a five-story multifamily building in Greenwich Village. As per the reports, he plans to convert the building to “mega-mansion.”
New York real estate site, The Real Deal, referred to Goei as “telecom hotshot” and said that they obtained documents proving that Goei bought the 11,000 square-feet property in May. The purchase was done around the time when Europe’s Altice NV completed their 17.7 billion dollars purchase of Bethpage, which is a New York based provider.
Representative of Altice refused to comment on the news, but they said that coat saving are being put back to business for things like broadband speed increase and network upgrades.
It is also reported that the proposed mega-mansion of Goei is located down the block from another proposed mega-mansion that is being developed by Sex and the City star, Sarah Jessica Parker. So, why is it news that Dexter Goei, who had a successful career at banks Morgan Stanley and JP Morgan Chase, which extended for sixteen years, would like to buy a great mansion?
The news is interesting in the context of the austerity culture that Goei is trying to implement not only at the former Cablevision, but also at the Suddenlink Communications that was acquired by Altice last year for 9.1 billion dollars. In a Wall Street Journal story, a Suddenlink employee explained that Altice is creating a ‘culture of fear’ at Suddenlink. Some of the experts think that the purchase of the mega-mansion is made to set up a controlling center for the various businesses of Altice.
Altice NV has not conducted any wide-scale job cuts in their recent acquisitions, although a Wall Street Journal report said that they are using a workplace dynamic that seems to have a similar staff cutting effect. As per the report, Altice have set up an “authoritarian” investment committee that aims to study over expense related minutes in their meetings.