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Altice USA shares spiked as much as about 50% on Monday following a report that Charter Communications is considering buying the broadband company.
Charter is working with financial advisors as it considers whether it would make sense to buy Altice USA, Bloomberg reported Monday, citing people with knowledge of the matter. It is unclear if Charter has made a formal approach, the outlet added.
The larger company’s shares dropped nearly 2% Monday afternoon.
Charter declined to comment on the report, while Altice USA could not immediately be reached for comment.
The deal would bring significant consolidation at a time when major communications companies struggle to keep broadband and cable subscribers. Altice USA shares had plunged more than 40% this year before their jump Monday, while Charter’s stock has fallen about 25%.
Altice USA owns brands led by broadband, TV and phone company Optimum. The company has about five million customers.
Charter easily trumps its size with 32 million broadband and cable subscribers.
— CNBC’s Alex Sherman contributed reporting.
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