Charter Communications and Arris have signed a warrant agreement, with the MSO potentially buying as many as 6 million shares of the vendor over the next two years based on how much network and cloud equipment and service it buys.
Outlined in an 8-K filing with the SEC, the deal follows a very similar arrangement between Comcast and Arris involving 8 million shares that was announced in early July.
The agreement is set to vest in three segments through 2018.
“In order for the warrant to vest above the 1 million share threshold in 2016 and above the 2.5 million threshold in both 2017 and 2018, specified increased purchases are required and a set percentage of the purchases must be for goods and services included in ARRIS’ Network & Cloud segment for 2016, 2017, and 2018, respectively,” the 8-K filing said.
The warrants expire on Sept. 30, 2023.
For its part, Comcast has recently been aggressive in forging deals that allow it to own a portion of its vendors based on how much business it gives them. Last week, the top MSO put out its own 8-K, outlining a deal with Harmonic tied to CCAP sales.
And in March, Comcast entered into a warrant deal with remote control maker Universal Electronics, tied in part to the X1 voice remote.
For more:
- read this SEC filing
- read this Multichannel News story
Related articles:
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Comcast signs warrants agreement with X1 voice remote maker Universal Electronics
Arris offers equity to Comcast to boost cloud business