French-Israeli billionaire Mr. Patrick Drahi stated that he intends to acquire more U.S. cable providers after buying Cablevision Systems Corporation (NYSE:CVC). He may come up with a plan to acquire a mobile-phone firm in the coming period. Speaking shortly after his European telecom firm, Altice NV, acquired Cablevision in a $17.7 billion deal, Drahi announced at a media conference that he can still expand the size of the business in the United States and that he identifies more opportunities to consolidate.
The highlights
Drahi, who few months ago ventured into the U.S. cable market by acquiring a stake in Suddenlink Communications, stated at some point he plans to own an American wireless provider firm, but added it would take time. At the Goldman Sachs Communacopia conference, he said that they are too small and they will see if they can acquire more cable systems even before they think of mobile vertical.
When asked which cable operator firm he would like to buy next, he answered all of them, basically. The billionaire, popular for his effective cost-cutting measures, highlighted the numerous layers of people highly compensated at Cablevision. He said that he pay as little as he can!
The plans
Altice acquired the fourth-largest cable provider firm in the United States with Cablevision Systems Corporation (NYSE:CVC). In wireless market, the billionaire options are confined to three smaller operators, T-Mobile US Inc., Sprint Corp. and TracFone. There are just three options in the country’s wireless market where the company can target for in the future. From the three firms, T-Mobile appears most attractive as its subscribers’ base is increasing and it has once again become profitable.
In the Cablevision acquisition deal, Altice partnered with CPP Investment Board and BC Partners, which have an option to purchase 30% of the U.S. cable firm. In due course, it might want to list its American assets in the country.
