What's going on?

Altice, a multinational telecoms group based in the Netherlands, announced on Tuesday that it plans to restructure its business after investor pressure related to its high debt levels.

What does this mean?

Altice, which owns major European telecoms brands like SFR, has been on a spending spree since 2005, splashing out more than $50 billion to acquire cable firms worldwide (it�s now the fourth-largest cable operator in the States!). In investors� eyes, however, all that shopping has left Altice with a multi-billion-dollar debt problem.

In order to get this under control, Altice�s management in Europe has pledged to put away the checkbook and rejig the company, fully spinning off its massive American operations (it currently owns two thirds of Altice USA, with the rest of the shares trading on public markets). While Altice�s current CEO is planning to retain a significant degree of control over the American company�s management, the split will put more Altice USA shares on the open market while kicking back some much-needed cash to Altice HQ.

Why should I care?

For markets: Shares of both Altice (in Europe) and Altice USA climbed on the news. �

One reason that Altice�s investors ought to be especially happy is that Altice USA is planning to pay out a $1.5 billion dividend to its shareholders before parting ways with its European parent. Altice will apparently use a sizable chunk of this cash to reduce its debt load. As a separate company, it�s possible that Altice USA will become a takeover target � which is likely one reason its stock price also jumped following the news.

The bigger picture: Altice�s debt levels have spooked investors. �

Shares in Altice took a major nosedive in November after the company announced that its profits for 2017 would likely be lower than expected. Thanks to Altice�s high debt load, any drop in the firm�s income means that the company might face serious financial difficulties if it fails to cough up the cash that it borrowed to pay for all those goodies.