Cablevision Owner Altice USA Eyes Possible IPO (Report)

Altice founder Patrick Drahi Getty - H 2016
Courtesy of Getty Images

Founder Patrick Drahi and his team could use a stock market listing to help it with further acquisitions.

Altice USA, the U.S. cable operator that Netherlands-based telecom giant Altice created by acquiring Cablevision Systems and a majority stake in Suddenlink Communications, is eyeing a possible initial public offering next year, Reuters reported, citing people familiar with the situation.

Altice founder Patrick Drahi has been looking to expand his U.S. cable business further. An IPO would give it stock that it could use to help finance further acquisitions.

The report said that Altice USA could be valued at $25 billion-$30 billion and is inviting investment banks to make presentations with an eye on possibly hiring bankers for the potential IPO, which could raise around $2 billion, by early next year. Altice USA could end up going public some time later in the year.

Drahi and his team could still decide to keep Altice USA private, Reuters said.

"We are focused on execution," said an Altice USA representative. "We do not plan anything else at this stage."

Altice USA is led by CEO Dexter Goei. Asked about potential further U.S. cable deals, management previously said it expects to mostly keep its head down this year. The current year is “a year of integration and operation,” Goei said earlier this year, adding, “We don’t anticipate doing anything else.”

Analysts and other industry observers have taken that to mean that more deals could come into focus next year.