NYPSC Extends Review of Altice/Cablevision to May 20
The New York Public Service Commission will take three more weeks to review Altice’s $17.7 billion takeover of Cablevision. The new deadline is May 20, said an Altice letter released Tuesday by the PSC. A counsel for the Communications Workers of America, which has opposed the deal, claimed that lack of progress in a contested separate review by New York City might have contributed to the delay.
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Altice, Cablevision and New York PSC counsel agreed “to an extension of the deadline, to and including May 20, 2016, for the New York Public Service Commission to issue a final order on the Joint Petition,” a counsel for Altice wrote in the letter. A New York PSC spokesman said, “In keeping with powers granted as a result of a law signed by Governor Cuomo expanding oversight of the sale or merger of cable companies, the PSC is conducting a thorough and detailed review of the proposal to ensure it’s in the best interest of Cablevision’s customers and the State as a whole. Given the importance of the issues presented, the Commission has accepted the extension of the period for review so that it may consider the matter more fully.”
The New York PSC has closely scrutinized Altice/Cablevision since launching its review Nov. 4. The PSC has held five public forums, in which the commission heard concerns related to the size of the debt involved, lack of broadband for low-income families, potential job losses and community impact. The CWA has been a leading opponent of the deal in New York, arguing that the parties haven’t established that the financial structure of the proposed sale is in the public interest (see 1603090081). But Altice has argued that the deal will enhance competition, promote network improvements and increase broadband penetration in New York.
Altice “remains actively engaged in the regulatory process, which is well underway and proceeding as anticipated,” said a spokeswoman for the Netherlands-based company. “Altice, Cablevision Systems Corporation, and New York Public Service Commission counsel have agreed to extend the deadline to issue a final order on the Joint Petition in New York by three weeks, but this extension is not expected to affect the projected timetable for closing, which remains before the end of the second quarter of this year.”
A parallel review in New York City could have contributed​ to the delay at the New York PSC, said Richard Brodsky, counsel to CWA. The city is reviewing the deal based upon language in its franchise agreement with Cablevision, which the city has interpreted as a right to approve transfer of ownership of the franchise. Altice and Cablevision have contested the city’s right to review the transaction, Brodsky said in an interview. “Apparently, Altice and Cablevision have not been fully cooperative with New York City,” he said. “It’s pretty clear that Altice and Cablevision need permission from both. I would guess that the state process is being held up by the lack of progress on the city side.”
“The City’s review and approval authority over the Altice-Cablevision merger is clear,” Maya Wiley, counsel to Mayor Bill de Blasio, said in an emailed statement. “As with any franchise transaction impacting one of our franchise agreements, we will be taking a close look to make sure that this merger is in the public interest. We want to make sure our residents are getting the services they deserve and that a change in ownership does not mean that New Yorkers are shortchanged on quality of service, quality of infrastructure, consumer protection and jobs.”
The Altice spokeswoman declined to comment on Brodsky’s statements, while Cablevision didn’t respond to a request for comment. Outside of New York, Altice/Cablevision is under review at the FCC (see 1603140066) and the New Jersey Board of Public Utilities. The FCC's unofficial 180-day shot clock to review the deal expired last month.