Charter Communications (NASDAQ:CHTR) is reportedly considering the acquisition of broadband provider Altice USA (ATUS), according to Bloomberg News, citing sources familiar with the situation.
ATUS rose about 5% in premarket trading Tuesday following the news while CHTR climbed 1.8%.
Charter is said to be consulting with financial advisors to evaluate the benefits of a potential purchase of the U.S. broadband and video services provider.
Bloomberg said its sources indicated that it remains uncertain if Charter has formally approached Altice USA about a deal, and that it is possible that the telecom giant may opt not to proceed with any transaction.
Altice USA, with a market valuation of approximately $1 billion and carrying a substantial debt load of $25 billion, would require Charter to assume the full debt value in any acquisition not involving debt restructuring.
The news of Charter's potential interest in Altice comes after the company witnessed an unexpected decline in broadband customers, highlighting the competitive pressures and promotional challenges within the densely competitive market.