Rumor: Charter in talks to acquire Bright House

digital media market

There may be more consolidation in the pay-TV space as Bloomberg today is reporting that Charter Communications has been talking with Bright House Networks about an acquisition for “at least a couple of months,” and likely is waiting to announce a deal until after regulators decide on Comcast’s $45 billion bid for Time warner Cable.

Citing people familiar with the talks, Bloomberg said Bright House, the 6th biggest cable television operator in the U.S. with about 2.5 million customers in Florida, California and Michigan, already have wire-framed a possible deal, which likely would be an all-stock transaction for the company, which is valued near $12 billion.

Bright House could be valued at some $12 billion.

Charter failed last year in its attempt to acquire Time warner Cable when Comcast out bid it.

Since then, Charter’s financial position has improved and pundits speculate that it would renew its efforts to acquire TWC if regulators block Comcast, something many analysts feel is likely.

The news has energized several media stocks, with Charter seeing a 5%-plus jump by early afternoon.

Stay tuned.

Jim O’Neill is Editor of Videomind and Principal Analyst at Brightcove. You can follow him on Twitter @JimONeillMedia and on LinkedIn