Could Comcast make a move on Altice USA?

With Altice USA revamping its management with a slew of Comcast veterans, investors are wondering if the latter might be eyeing an acquisition of the former. While neither company has publicly indicated they’re interested in such a deal, New Street Research (NSR) thinks a tie-up would have a decent chance of approval, depending on the political administration. NSR's Blair Levin indicated in a note to investors that if Comcast were to buy Altice, it would be considered a geographic expansion transaction, in which a provider in one area purchases a provider of similar services in a different area. Politics at the Federal Communications Commission could play a role in the approval of a Comcast-Altice deal. Levin said a Democrat-controlled FCC would likely seek conditions to ensure the transaction serves the public interest, such as a discounted service offer for low-income households or a commitment to additional footprint expansion. Recon Analytics principal Roger Entner, on the other hand, thinks it’s unlikely a Democratic administration would approve Comcast’s acquisition of Altice at all. He said that, typically, a Democrat-led FCC lets industries consolidate down to four players, whereas Republican administrations tend to allow consolidation down to three companies.