NEW YORK (TheStreet) -- Shares of Cablevision (CVC)  are fluctuating after opening Friday trading at $32.51 following its sale to Altice (ATSVF) for $17.7 billion yesterday.

Altice will pay $34.90 in cash per share of Cablevision, a 22% premium over the stock's closing price on Wednesday.

The European telecom company purchased Cablevision, the fourth largest cable television operator in the U.S., as it looks to expand its footprint in the U.S.

"This deal takes us into the most affluent part of the United States and will be a good basis for further expansion. We think there are significant ways to improve profitability by pooling purchasing and other costs between Cablevision and Suddenlink," said Altice CEO Dexter Goei.

Altice founder Patrick Drahi said that he expects to achieve a target of $900 million in annual synergies at the company, according to Reuters.

Part of his cost cutting measures will be cutbacks on the more than 300 employees making over $300,000 annually, Drahi said at a news conference.

Separately, TheStreet Ratings team rates CABLEVISION SYS CORP as a Hold with a ratings score of C. TheStreet Ratings Team has this to say about their recommendation:

"We rate CABLEVISION SYS CORP (CVC) a HOLD. The primary factors that have impacted our rating are mixed ? some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its revenue growth, expanding profit margins and solid stock price performance. However, as a counter to these strengths, we also find weaknesses including deteriorating net income, weak operating cash flow and feeble growth in the company's earnings per share."

Highlights from the analysis by TheStreet Ratings Team goes as follows:

  • Despite its growing revenue, the company underperformed as compared with the industry average of 6.4%. Since the same quarter one year prior, revenues slightly increased by 1.6%. This growth in revenue does not appear to have trickled down to the company's bottom line, displayed by a decline in earnings per share.
  • The gross profit margin for CABLEVISION SYS CORP is rather high; currently it is at 51.28%. Regardless of CVC's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, the net profit margin of 4.57% trails the industry average.
  • The company, on the basis of change in net income from the same quarter one year ago, has underperformed when compared to that of the S&P 500 and greatly underperformed compared to the Media industry average. The net income has decreased by 19.8% when compared to the same quarter one year ago, dropping from $94.21 million to $75.60 million.
  • Net operating cash flow has decreased to $368.70 million or 12.87% when compared to the same quarter last year. In addition, when comparing the cash generation rate to the industry average, the firm's growth is significantly lower.
  • You can view the full analysis from the report here: CVC