On Oct. 21, 2016, Reuters reported that — according to “people familiar with the matter” — Altice USA is “drawing up plans for a potential initial public offering” of stock.
On Tuesday (4/11), those rumors became reality, as the owner of the Suddenlink MVPD and Optimum MVPD service acquired as part of Altice’s $17.7 billion June 2016 purchase of Cablevision from the Dolan Family formally announced its IPO plans regarding the issuance of Class A Common Stock.
In an S-1 filing with the SEC, Altice USA formally set its IPO value at the placeholder value of $100 million. According to The Wall Street Journal, the IPO could raise upward of $1 billion. BC Partners Ltd. and Canada Pension Plan Investment Board, which together own 30% of Altice USA, are likely to sell 5% to 10% of the company, the Journal reports.
This would value Altice USA at more than $20 billion.
Altice’s 2016 consolidated revenue grew to $9.15 billion, from $8.97 billion. This was paced by growth in its broadband; business services and wholesale; and advertising segments.
Revenue for Altice’s core Pay TV segment dipped to $4.23 billion, from $4.26 billion in fiscal 2015.
Yet, Altice’s net loss shrunk in fiscal 2016 to $656.45 million, from $1.1 billion.
Altice addressed this in its S-1 filing, stating among the risks associated with its IPO.