Fair Media Council Opposes Altice-Cablevision Deal

The Fair Media Council opposes the proposed acquisition of Cablevision by Luxembourg-based Altice NV, citing grave concern for the public interest, public safety and the local economy.

“The burden of debt Altice will assume, combined with Altice’s reputation for diminished services and the company’s lack of experience in this market – which is already apparent in its missteps in preparation to purchase Cablevision  – combine to make this the perfect storm of a deal that will result in irreparable harm to the public and the region,” said Jaci Clement, CEO and Executive Director of the Fair Media Council.

In its Feb. 5, 2016 filing with the Public Service Commission, FMC expressed ‘no confidence’ in the Altice sale – noting Altice’s own strategy amounted to little more than profit margins gained through cost-cutting measures.

From FMC’s filing:

As stated by Altice in its conference call with investors, Altice’s intent is to acquire the company and dramatically cut expenses – hundreds of millions of dollars – within an eight-month time frame, with more expense cuts to follow. The company also made clear cost reductions would come at the hands of what they regard as many Cablevision employees who are ‘overpaid.’ (The audio of the Sept. 17, 2015 call is available online at Altice.net.)

Given the enormous debt load (about $15 billion) Altice will assume, it is incomprehensible that such a high-risk sale shall be approved for one of the region’s biggest employers, with nearly 14,000 workers, and an economic engine for New York.

Based on public statements, Altice’s strategy to succeed in this marketplace is a combination of draconian expense-cutting measures that will negatively impact the local economy while causing what can only be described as undue harm to Newsday and the news and information it provides for the nearly 3 million people in the Long Island community.

Further, Cablevision’s control of the distribution of information to the people of New York, New Jersey and Connecticut, via its cable, internet and Wi-Fi offerings, stands to suffer readily should Altice not find the profit margins they need to reinvest in the aging communication infrastructure.

Please keep in mind, the vulnerability our coastal geography affords us, and the important role Cablevision systems’ information dissemination provides in times of emergency. The health and well-being of this region is directly influenced by the strength of Cablevision’s infrastructure.

The burden of debt and its impact on operations; the lack of expertise in the New York marketplace (and the American market, for that matter) and the lack of commitment to the local community are three major reasons why you should not approve of this deal. Taking Cablevision earnings out of this market is another factor to serious consider – or is the New York economy so strong it won’t miss that $6 billion it has grown to rely on?

For all of the issues noted above, the Fair Media Council cites no confidence in Altice’s ability to own Cablevision and Newsday. We respectfully request the Public Service Commission not approve this sale, for the sake of the public.’

“The Fair Media Council has listened intently to the concerns expressed by our members and supporters, and the consensus is simply this: No to foreign ownership. No to the loss of local control. No to Cablevision revenue leaving the local economy. No to the announced cost-cutting measures that will surely result in job loss and diminished service, news and information,” Clement noted.

The Fair Media Council applauds the City of New York and the Communications Workers of America for also opposing the Altice-Cablevision deal.

The Fair Media Council is one of the oldest and most successful media watchdog organizations in the country. Based on Long Island since 1979, FMC has nearly 200 corporations and nonprofit organizations as members. FMC advocates for quality local news and works to create a media savvy society.

Download FMC’s filing with the Public Service Commission[download id=”10105″]