Igor Golovniov | Lightrocket | Getty Images
Altice USA shares spiked 36% on Monday following a report that Charter Communications is considering buying the broadband company.
Charter is working with financial advisors because it considers whether it could make sense to purchase Altice USA, Bloomberg reported Monday, citing individuals with knowledge of the matter.
Altice hasn’t been approached by Charter to start talks on a possible transaction, an individual accustomed to the matter told CNBC.
The larger company’s shares dropped about 2% on Monday.
Charter declined to comment on the report, while Altice USA couldn’t immediately be reached for comment.
The deal would bring significant consolidation at a time when major communications corporations struggle to maintain broadband and cable subscribers. Altice USA shares had plunged greater than 40% this yr before their jump Monday, while Charter’s stock has fallen about 25%.
Altice USA owns brands led by broadband, TV and phone company Optimum. The corporate has about five million customers.
Charter easily trumps its size with 32 million broadband and cable subscribers.
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