Three years after Charter Communications bought a controlling stake in the nation’s largest charter communications provider, one thing is clear: Charter has found success.
The deal, which will net Charter the majority stake in NextWeb Inc., gives the internet giant access to NextWeb’s data centers, which are home to millions of its customers.
That makes NextWeb the country’s largest digital media company, and the deal is likely to help Charter increase its presence in the digital space.
Charter, which owns a 30 percent stake in Niantic Inc., has been looking to tap NextWeb for years.
In January, it said it would acquire NextWeb, and in November, it signed a deal to buy its data center.
The deal was worth $350 million, according to the New York Stock Exchange.
Last week, NextWeb reported a strong fourth-quarter that saw revenue grow by 23 percent to $1.4 billion, and it reported another $1 billion in revenue in the fourth quarter.
The company also posted net income of $2.3 billion, or $1 a share, compared with a year earlier.
The growth in Nextweb’s revenue comes amid a market slowdown as consumers switch to cheaper broadband providers and new entrants such as Charter, which has struggled to build its presence on the internet.
NextWeb said in November that its net income fell by 17 percent from a year ago.
The net loss in fiscal year 2017 was $1 million, the company said.
Charter has also seen a drop in subscriber numbers.
Last year, the cable company said it lost 2.2 million subscribers, which is less than half its net loss for the year, and a total of 934,000 in the third quarter, which ended March 30.
Charm Communications Inc. shares closed up about 5.4 percent at $37.11 on the Nasdaq.
The stock closed at $42.50 on Friday, up from $37 last week.
Shares of Charter Communications jumped 8.4 points to $56.76.