Charter Communications and Bright House Networks said they are continuing to move toward completing their previously announced merger, and have extended their good-faith negotiating period for an additional 30 days as they try to work out a deal.
Charter had agreed to purchase Bright House in March for $10-.4 billion, but that transaction was contingent on the Comcast-Time Warner Cable merger being completed. When Comcast terminated the TWC deal on April 24, it also sent the Bright House purchase back to the drawing board.
Bright House purchases its programming through Time Warner Cable as part of an earlier agreement, and the larger company has the right to match or beat any offer for the company. While analysts have speculated that purchasing Bright House could help TWC thwart Charter from attempting to make another run at the second largest cable operator in the country, TWC has remained silent.
In a statement, Charter and Bright House said they “remain committed to completing their previously announced transaction on the same economic and governance terms.”
Bright House is the sixth largest cable operator in the United States, and serves about 2 million video customers in central Florida including Orlando and Tampa Bay, as well as Alabama, Indiana, Michigan, and California. The acquisition would boost Charter’s subscriber base to more than 6 million customers.
"Bright House and its employees have created a high quality service operation, and the addition of Bright House brings additional scale and strategic flexibility to Charter over time,” said Charter CEO Tom Rutledge in a statement. “We look forward to completing the transaction as planned, and our teams are working together to make that happen."
Bright House seemed equally driven to completing the deal.
"We continue to be excited about the transaction with Charter,” Bright House CEO Steven Miron said in a statement. “We believe this combination positions the new company to become an industry consolidator and growth platform to develop innovative products in serving customers, growing market share and creating value for shareholders."