Charter announces $10.4 billion cable acquisition

Charter Communications, the fourth largest cable company, announced a $10.4 billion deal to acquire the sixth largest cable company, Bright House Networks. 

The announced deal is the latest consolidation move among cable giants, as federal regulators are currently reviewing a merger between the top two cable companies — Comcast and Time Warner Cable. 

The Federal Communications Commission and the Justice Department are expected to finish that separate review by the middle of the year. 

In the deal announced Tuesday, Charter will own a 74 percent stake in Bright House, making it the second largest cable company, according to the company. The deal is subject to federal regulatory approval, as well as several other conditions involving Time Warner Cable and Comcast. 

Bright House has 2.5 million customers in Florida, Alabama, Indiana, Michigan and California. It is the second largest cable provider in Florida. 

The deal would also include Liberty Broadband Corp. buying $700 million in Charter shares. The 13-member board would consist of three directors from Liberty Broadband and three from Advance/Newhouse Partnership, the parent company of Bright House. 

“This acquisition enhances our scale, and solidifies New Charter as the second largest cable operator in the US,” Charter President Thomas Rutledge said in a statement. “I look forward to working with the Bright House team, whom we have known for years, in delivering great products and services to grow our market share."