Altice USA shares experienced a significant increase of 36% on Monday, following reports that Charter Communications is contemplating buying the broadband company. Charter is reportedly consulting with financial advisors to consider the potential acquisition of Altice USA. Despite the substantial surge in Altice USA's shares, Charter's stocks suffered a slight decline of about 2% on the same day. Up until this point, Altice USA has not been formally approached by Charter to initiate discussions regarding a possible transaction.

The proposed acquisition could lead to a notable consolidation in the industry during a time when major communications companies are facing challenges in retaining broadband and cable subscribers. Altice USA, which owns brands such as Optimum, currently serves approximately five million customers. In contrast, Charter dwarfs Altice USA in size with a customer base of 32 million broadband and cable subscribers.

This news of a potential merger comes at a crucial juncture, especially as Altice USA shares had previously plummeted more than 40% earlier this year before the sudden spike on Monday. Similarly, Charter's stock has seen a decline of around 25% over a period. While Charter declined to provide a comment on the speculative report, Altice USA has not issued an official statement on the matter at the time of reporting. The industry will be closely monitoring any developments in this potential acquisition as companies navigate the complexities of the telecommunications landscape.