Global telecommunications provider Altice N.V. announced Thursday that it is “exploring the possibility” of selling the public a minority stake in its U.S. subsidiary, Bethpage-based Altice USA.
The timing and structure of a possible initial public offering of the subsidiary are in flux, the announcement said. Altice N.V. would continue to own a majority of Altice USA, which runs cable, broadband and digital telephone services in 20 states, including Long Island.
A spokeswoman for Altice USA declined to elaborate on the potential IPO.
Shares of Altice N.V., which is based in the Netherlands, rose 3.8 percent to 16.89 euros Thursday on the Euronext Amsterdam exchange.
An IPO of Altice USA would vault it into the ranks of the largest publicly traded companies by revenue on Long Island. Altice USA has more than 16,000 employees and had 2015 revenue of $8.93 billion, according to the spokeswoman.
Altice N.V. reported in November that in the third quarter Altice USA’s pro forma revenue rose 2.7 percent from the year-earlier period to $1.6 billion.
Robert Goldberg, a professor of accounting, finance and economics at Adelphi University, said, “It’s not unusual for companies to spin off, or sell, minority stakes in divisions as a way of raising capital, allowing investors to cash out some of their investments and providing currency for other acquisitions.”
Altice N.V. purchased Cablevision Systems Corp. for $17.7 billion in June. Altice USA owns 25 percent of Newsday Media Group.
Altice N.V. also has operations in France, Switzerland, Portugal, Israel and the Dominican Republic.
CORRECTION: Robert Goldberg, a professor at Adelphi University, said it’s not unusual for companies to spin off or sell minority stakes in divisions. A previous version of this story misquoted his perspective.