Altice USA to keep Suddenlink business after strategic review

Business

Altice USA Inc (ATUS.N) will retain its regional internet and cable business, Suddenlink, the broadband service operator said on Thursday, following a strategic review.

The company, controlled by Franco-Israeli telecoms tycoon Patrick Drahi, had hired Goldman Sachs to run the divestment process, a source said, with the business likely fetching a valuation of $20 billion including debt.

Shares of Altice fell about 4% in trading before the bell.

Altice had acquired Suddenlink, which primarily serves customers in the south-central U.S., for $9.1 billion in 2015 and rebranded it as “Optimum” in August.

The company was exploring a sale of Suddenlink to reduce its debt load amid strong competition and subscriber losses. Altice, which has a market capitalization of about $2 billion, has a long-term debt of about $24 billion.

The stock has lost about half its value since reports of the company exploring a sale of the unit emerged.