The nation's fourth-largest cable operator
Bright House is the sixth largest cable operator in the country and serves about two million video customers in central Florida, as well as in Alabama, Indiana, Michigan and California.
The deal, which is indicative of the increasing consolidation in the cable industry, will create the second-largest cable company in the nation if approved.
Shares of Charter spiked more than 6% to $195.35 in the premarket.
"Bright House Networks provides Charter with important operating, financial and tax benefits, as well as strategic flexibility," said Charter CEO Tom Rutledge in a statement. "Bright House has built outstanding cable systems in attractive markets that are either complete, or contiguous with the New Charter footprint."
Under the terms of the deal, Charter will own 73.7% of the new business and Bright House's parent company Advance/Newhouse will own 26.3%. Charter is using primarily stock to finance the deal, and said it would also put up $2 billion in cash.
The deal is subject to shareholder and regulatory approval, including the success of the
Liberty Broadband, which owns a stake in Charter and is controlled by billionaire media mogul John Malone, will purchase $700 million of the newly issued stock upon closing.