Altice USA Discussing Sale of Cheddar to Private Equity Firm

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Altice ($NYSE:ATUS) USA, a telecommunications and media company headquartered in New York City, is currently in negotiations to sell its digital media business Cheddar to a private equity firm. Altice USA operates four main business segments: Optimum Residential, Optimum Business, Suddenlink and Cheddar. The Optimum Residential and Optimum Business segments provide telecommunications services to residential and business customers, respectively. The Suddenlink segment provides cable television, internet and voice services. As a digital media company, Cheddar delivers live financial and business news with a focus on millennial viewers.

Altice USA previously announced plans to divest some of its assets in order to pay down debt and expand its presence in the telecommunications industry. The potential sale of Cheddar could provide the company with additional financial flexibility to pursue its goals. Talks are ongoing between Altice USA and the private equity firm, and it is unclear when the sale may be finalized.

Share Price

On Monday, ALTICE USA discussed the potential sale of its popular news and entertainment network Cheddar to a private equity firm. The news sent shockwaves through the stock market, driving ALTICE USA’s opening stock price of $2.2 down to its closing price of $2.0; a drop of 6.0% from its last closing price of $2.2. This news has many investors concerned about the company’s future, and many have expressed their disappointment with the decision to potentially sell Cheddar. It remains to be seen what the outcome of the potential sale will be and how it will impact ALTICE USA’s overall stock performance. Live Quote…

About the Company

Income Snapshot

Below shows the total revenue, net income and net margin for Altice Usa. More…

Cash Flow Snapshot

Below shows the cash from operations, investing and financing for Altice Usa. More…

Balance Sheet Snapshot

Below shows the total assets, liabilities and book value per share for Altice Usa. More…

Key Ratios Snapshot

Some of the financial key ratios for Altice Usa are shown below. More…

Analysis

As GoodWhale, we performed an analysis of ALTICE USA‘s wellbeing. Our Star Chart showed that ALTICE USA is classified as an ‘elephant’, a type of company which we concluded has rich assets after deducting liabilities. This type of company may interest investors who are looking for investments with a solid foundation. Furthermore, ALTICE USA has an intermediate health score of 6/10 with regard to its cashflows and debt, which suggests it might be able to sustain future operations in times of crisis. Additionally, ALTICE USA is strong in profitability and weak in asset, dividend, and growth. This means investors may not expect to see significant increases in the value of their investment but can rest assured that profitability will remain strong. More…

Peers

In the telecommunications industry, there is intense competition between Altice USA Inc and its major competitors: Charter Communications Inc, Comcast Corp, and Verizon Communications Inc. All four companies offer similar products and services, so they must differentiate themselves in order to attract and retain customers. Price is often a major factor in deciding which company to choose. In addition to price, customers also consider factors such as customer service, coverage, and speed when making their decision.

– Charter Communications Inc ($NASDAQ:CHTR)

Charter Communications Inc is a leading American telecommunications and mass media company with a market cap of 58.28B as of 2022. The company operates in four segments: residential, small and medium business, enterprise, and advertising sales. It offers a range of services, including broadband internet, video, and voice services, as well as digital advertising solutions. The company has a strong focus on delivering value to shareholders, with a return on equity of 80.45%.

– Comcast Corp ($NASDAQ:CMCSA)

Comcast Corporation is an American telecommunications conglomerate that provides cable television, internet, telephone, and wireless services to consumer under the Xfinity brand. It is the second-largest broadcasting and cable television company in the world by revenue and the largest pay-TV company, the largest cable TV company and largest home Internet service provider in the United States, and the nation’s third-largest home telephone service provider. Comcast has a market cap of 149.16B as of 2022 and a Return on Equity of 9.26%. The company provides services to over 26 million customers in 40 states and the District of Columbia.

– Verizon Communications Inc ($NYSE:VZ)

Verizon Communications Inc is an American multinational telecommunications conglomerate and a corporate component of the Dow Jones Industrial Average. The company has a market cap of 161.9B as of 2022 and a Return on Equity of 20.79%. Verizon was formed in 2000 by the merger of Bell Atlantic and GTE. It is one of the largest telecommunications companies in the world, with 144 million customers as of 2019. The company operates in four segments: Wireless, Residential, Business, and Verizon Media Group. Verizon Wireless is the largest wireless carrier in the United States with 151 million subscribers as of 2019. Verizon Residential provides FiOS Internet, TV, and digital voice services to residential customers in the United States. Verizon Business provides voice, data, and Internet services to businesses and government agencies. Verizon Media Group is a media and technology company that operates AOL, Yahoo!, HuffPost, TechCrunch, and other brands.

Summary

ALTICE USA is a telecommunications and media company and has recently been in talks to sell Cheddar, its streaming media service, to a private equity firm. Investors should consider the long-term impact of the potential sale on ALTICE USA’s stock price. If the sale goes through, it could mean positive or negative changes in the company’s revenue stream, depending on the deal terms.

ALTICE USA’s stock price initially took a dip following news of the sale discussions, although this could be attributed to investor uncertainty in the short-term. Overall, ALTICE USA appears to be in strong financial shape and investors should consider the positive potential of the Cheddar sale before making any decisions.