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Altice United States Shares rose as much as about 50% on Monday following a report that Charter Communications is considering buying the broadband company.
Charter is working with financial advisors as it considers whether it would make sense to buy Altice USA, Bloomberg reported Monday, citing people with knowledge of the matter. It is unclear whether Charter has made a formal approach, the outlet added.
Shares of the largest company fell 3% on Monday afternoon.
Charter declined to comment on the report, while Altice USA could not immediately be reached for comment.
The deal would bring significant consolidation at a time when major communications companies are struggling to maintain broadband and cable subscribers. Altice USA shares have plunged more than 40% this year, while Charter shares have fallen about 25%.
Altice USA owns brands led by broadband, television and telephone company Optimum. The company has around 5 million customers.
Charter easily exceeds its size with 32 million cable and broadband subscribers.
