Charter Communications Up on M&A Extension, Verizon Falls on Lawsuit -- Telecom Winners & Losers

NEW YORK (TheStreet) --  Charter Communications (CHTR) climbed Tuesday after it extended its merger talks with Bright House Networks. Verizon Communications (VZ) slipped lower after Cablevision Systems (CVC) filed a lawsuit against the carrier.

Charter Communications rose 0.33% to close at $181.64, on a day when the Nasdaq Telecom Index fell 0.37% to end at 283.38.

The cable and television company rose after the companies on Monday said they plan to extend their negotiating period by 30 days and expect to strike an agreement under the terms of its previously announced $10.4 billion deal, according to an Associated Press report.

Under the deal, Charter will own 73.7% of the partnership used to operate the merged companies and Bright House's parent Advance/Newhouse will hold a 26.3% stake, according to the Associated Press

The deal, announced in March, is designed to give Charter operating, financial and tax benefits, as well as strategic flexibility. Bright House's cable footprint either completes or is contiguous with Charter's new footprint, Charter CEO Tim Rutledge said at the time the deal was announced.


Verizon fell 0.10% to end the day at $49.55.

The telecom carrier took a hit after Cablevision filed a lawsuit against the company, asking the court to rule in its favor regarding its claims that Verizon's FiOS services fails to rely solely on fiber optic cables as it claims, according to a Reuters report. The lawsuit was in response to Verizon's legal action in which it sought to nix Cablevision's advertising campaign that alleges Verizon does not use 100% fiber optics in the home but regular cable, according to the report.

This lawsuit against Verizon is the latest Cablevision has brought against the carrier. In January, it filed a lawsuit saying Verizon used false advertising by touting it has the fastest WiFi in New York City, according to a report in the Wall Street Journal.

This article is commentary by an independent contributor. At the time of publication, the author held no positions in the stocks mentioned.

More from Technology

Musk's Tweets About Unions Draw Fire From United Auto Workers

Musk's Tweets About Unions Draw Fire From United Auto Workers

PayPal Wants to Consolidate the World of Rewards Points

PayPal Wants to Consolidate the World of Rewards Points

Tesla Just Hit a Pair of Big Milestones for the Model 3

Tesla Just Hit a Pair of Big Milestones for the Model 3

Is Apple Botching Its Autonomous Driving Opportunity?

Is Apple Botching Its Autonomous Driving Opportunity?

Apple Teams With Volkswagen for Autonomous Driving Gig

Apple Teams With Volkswagen for Autonomous Driving Gig