NEW YORK (TheStreet) -- Cable industry stocks are in focus this morning after a number of deals were announced, including Charter Communications' (CHTR) - Get Report agreement to buy Bright House Networks for $10.4B and Comcast (CMCSA) - Get Report announcing plans to establish a new strategic company in partnership with Chief Financial Officer Michael Angelakis.
WHAT'S NEW: Charter Communications announced this morning plans to buy privately held cable network owner Bright House Networks for $10.4B in cash and stock. Under the terms of the deal, Charter will pay Bright House owner Advance/Newhouse Partnership $2B in cash and the rest in common and convertible preferred units in the new partnership. Charter said "New Charter" will be 54.4% publicly owned, while A/N will own 26.3% and Liberty Broadband (LBRDA) - Get Report, Charter's largest shareholder, will own 19.4% after the Comcast and BHN transactions. Under a new stockholders agreement, Liberty will acquire $700M of newly issued Charter shares at the time the deal closes. The deal is subject to several conditions, including the expiration of Time Warner Cable's (TWC) right of first offer for Bright House and the close of Charter's previously-announced transactions with Comcast. In other cable industry news, Comcast announced this it will create a new company with CFO Michael Angelakis that will focus on investing in and operating growth-oriented companies. The new company will have total capital commitments of up to $4.1B, with Comcast investing $4B and Angelakis investing at least $40M personally. Angelakis will remain a senior adviser to the company while a CFO successor is found, and Angelakis will help assist with the transition to the new CFO and start the integration process for the Time Warner Cable deal. The new company will have a 10-year partnership with Comcast as sole outside investor. Comcast has proposed to acquire Time Warner Cable for about $45.2B and is currently in the process of obtaining approval from the Federal Communications Commission and the U.S. Department of Justice.
WHAT'S NOTABLE: Also in the cable industry, Reuters reported this morning that Cablevision (CVC) plans to make an offer for the New York Daily News that values the newspaper at just $1. According to a source, Cablevision's $1 bid, which could come as early as this week, takes into account the Daily News' declining circulation, reported $30M annual loss and $150M printing press investment.
ANALYST REACTION: Wells Fargo analyst Marci Ryvicker said this morning that though it has a "complicated" structure, the Charter deal for Bright House Networks is "attractively priced." Ryvicker also commented that the Comcast news, which she does not see as a change in its M&A strategy, is a "well thought out personal decision" by Angelakis. Ryvicker said the Comcast announcement likely does not have anything to do with the Time Warner Cable transaction, and that it does not necessarily mean Comcast is seeking to acquire additional cable companies. Ryvicker sees Comcast ultimately landing a CFO from outside the company.
PRICE ACTION: In morning trading, Charter Communications is up 7.8% to $197.70, Liberty Broadband is up 7.8% to $57.88, Time Warner Cable is up 0.7% to $150.25 and Comcast and Cablevision shares are both relatively flat.
Reporting by Laurie Pasternack Chan
is a leading digital publisher of real-time financial news. Our financial market experts understand that news impacting stock prices can originate from anywhere, at anytime. The Fly team scours all sources of company news, from mainstream to cutting-edge, then filters out the noise to deliver short-form stories consisting of only market moving content. Follow @theflynews on Twitter. For a free trial, click