Altice USA, the domestic cable arm of Dutch telecom company Altice N.V., is getting its ducks in order for a possible initial public offering next year, according to a Reuters report.
Altice USA was created after the telecom giant purchased Suddenlink Communications in December 2015 for about $9.1 billion. The company made its biggest purchase about six months later, buying Cablevision Systems in an all-cash deal valued at $17.7 billion.
Altice has made no secret of its desire to add scale to its U.S. operations – it has openly lusted for Cox Communications, even as the Atlanta-based operator has insisted it is not for sale. Most analysts have expected Altice USA to be eventually spun off from the parent, primarily so it could use its newly issued stock as a deal currency.
Altice USA already has a separate corporate structure – its CEO is Dexter Goei, who also serves as Altice N.V. president. Other corporate executive include co-president and chief financial officer Charles Stewart and co-president and chief operating officer Hakim Boubazine.
According to the Reuters report, Altice USA is preparing to invite investment banks to make pitches to the company in the coming weeks about an IPO. While Altice USA could opt to remain private, it could make a decision on bankers by January, with an IPO launch later that year, according to Reuters.
While sources familiar with the company said the IPO talk is a little premature – the company has said it plans to spend the next two years focusing on execution and integrating its existing acquisitions – it is expected to eventually go public.
Altice USA declined to comment on the Reuters report.