Pending $65.5B merger highlights elevated M&A in broadcasting
April 27, 2016
Charter Communications (NASDAQ: CHTR) is one step closer to forming the second-largest cable company and the third-largest multichannel video programming distributor in the U.S. With the Justice Department’s recent conditional settlement that allows Charter to acquire Time Warner Cable (NYSE: TWC) and Bright House Networks in a $65.5 billion merger, the combined company would have over 17 million video subscribers.
The pending deal is just one (very large, very public) example of heightened M&A activity in the broadcasting, radio & television sector, where acquisitive growth may be particularly attractive to companies seeking scale for an upper hand in programming negotiations. According to the PitchBook Platform, the broadcasting sector worldwide saw 146 M&A deals close in 2015, a small dip from the previous year but still elevated on a historical basis. Plenty of deals are still in the pipeline, though, with over 40 announced transactions from this year and last working toward completion.