Charter Communications, Inc. (CHTR) Goes Ahead To Acquire Bright House

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http://www.bidnessetc.com/43102-charter-communications-inc-chtr-goes-ahead-to-acquire-bright-house/

Charter Communications Inc. (NASDAQ:CHTR) announced yesterday that it is pursuing its merger deal with Bright House Networks, even after Comcast’s deal for Time Warner Cable collapsed just weeks ago. The cable and telecommunications company is going ahead to acquire Advance/Newhouse’s cable operator in a $10.4 billion bid, hinting the beginning of a new push to consolidate the major cable operators in the country.

The deal was previously finalized in conjunction with Comcast Corporation’s (NASDAQ:CMCSA) proposed bid to acquire Time Warner Cable Inc. (NYSE:TWC) and was contingent on that agreement’s completion. After Comcast’s deal did not successfully materialize, Bright House and Charter were to discuss their deal in an exclusive 30-day negotiation period, which was scheduled to expire this week.

The Wall Street Journal, however, reported that the two corporations have extended the negotiating period for their deal by another 30 days. Yesterday’s move keeps the deal valid despite the Comcast’s deal on which it was contingent fell through.

The two cable companies affirmed that they were committed to the completion of the deal on the same governance and economic clauses as the original agreement. The “good faith negotiating period” will extend for a month, which gives the two companies the chance to further deliberate on whether it is feasible to merge or not. Since the deal is not finalized as of yet, either party could choose to walk away from the deal.