Patrice Drahi, $ 17.7 billion to become a giant in the United States

by bold-lichterman

Much of Altice’s future will be built in the United States. Patrick Drahi’s group announced the acquisition of Cablevision for $ 17.7 billion, or € 15.7 billion. Less than six months after acquiring a majority stake in Suddenlink, the seventh cable operator, Altice becomes, with this new acquisition, the fourth American operator, he said in a statement. communicated. The Franco-Israeli has clear ambitions, in a cable market estimated across the Atlantic at $ 71 billion in 2015.

The investor, who a few months ago was still targeting France with Bouygues Telecom, intends to take advantage of the growth of the cable market in the United States. Between 2010 and 2015, the average annual growth rate is 3%, according to IbisWorld. Altice is banking on this maturity. The group paid $ 34.90 for each Cablevision share, a 22% premium on the closing price the day before the announcement. “Altice’s strategy in the large and highly strategic US market is reinforced with the acquisition of Cablevision,” said Patrick Drahi.

The challenge of new TV offers

Patrick Drahi’s group has also chosen to position itself in the most promising geographic areas in the United States, in terms of video consumption. In New York, Cablevision subscribers have thus subscribed 65% to tripleplay offers. The metropolis also represents 6.5% of the national cable subscriber market, as indicated a study Transparency Market Research.

In New York, however, the Cablevision group suffered losses on its press and TV media titles (Newsday and the News12 channel). Patrick Drahi, however, pledged to put them back afloat with new funding, according to the american press. The challenge for Altice (SFR-Numéricable) is in fact to compete with video-on-demand broadcasters, such as Netflix or Hulu, which have made a sensational entry in America, attacking the market shares of traditional broadcasters who must suddenly rethink their offers. In terms of VOD subscriptions, Netflix is ​​also far ahead of its competitors with 42.3 million customers in the second quarter of 2015, against only 2.6 million for Cablevision (10th), according to the association of American cable operators.

Founded in New York in 1973 by American entrepreneur Charles Dolan, Cablevision today employs more than 15,000 people. The acquisition will be finalized in the first half of 2016. On the Paris Stock Exchange, the Altice share was on the rise, taking nearly 4% at the opening to continue at a pace of + 1.6%.