Charter Communications announced Tuesday that it would buy Syracuse, N.Y.-based Bright House Networks for $10.4 billion.
The deal between Charter, the No. 4 U.S. cable company, and Bright House, the No. 6 company in the industry, continues the trend toward consolidation in pay-television.
The acquisition comes about a year after Charter was outbid by Comcast Corp. in a fight over Time Warner Cable. According to the St. Louis Post-Dispatch, the move will help Charter cement its presence in the Southeast by giving it a large market in Florida.
Charter moved its headquarters from Town and Country, Mo., to Samford, Conn., in 2012, but still maintains a large employee base in the St. Louis area.
In a press release, Charter CEO Tom Rutledge said that geographic footprint was a a key reason Charter made the decision to merge with Bright House Networks.
“Bright House Networks provides Charter with important operating, financial and tax benefits, as well as strategic flexibility,” Rutledge said.
Charter will pay Bright House Networks $2 billion in cash. The rest of the money in the deal will come from in common and convertible preferred stock options.