Charter (Spectrum) and Cox to merge in blockbuster $34.5 billion cable deal
Charter Communications will merge with Cox Communications in a $34.5 billion deal, uniting two of the top three U.S. cable providers.
Cox, the third-largest cable company, serves over 6.5 million customers with digital cable, internet, phone, and home security services across states from California to Virginia. Charter, operating as Spectrum, has over 32 million customers in 41 states.
The cable industry has faced intense competition from streaming platforms like Apple TV+, Disney+, Netflix, Amazon Prime Video, and HBO Max, as well as internet offerings from mobile carriers.
Comcast, which is of nearly equal size to Charter, spun off many of its cable television networks in November as as consumers increasingly swap out their cable TV subscriptions for streaming platforms.
So-called “cord cutting” has cost the industry millions of customers and left them searching for ways to successfully compete.
Charter said Friday that it will acquire Cox Communications’ commercial fiber and managed IT and cloud businesses. Cox Enterprises will contribute Cox Communications’ residential cable business to Charter Holdings, an existing subsidiary partnership of Charter.
Cox Enterprises will own about 23% of the combined company’s outstanding shares.
The transaction, which needs approval from Charter shareholders as well as regulators, includes $12.6 billion in debt.
MacDailyNews Note: If approved, the combined company plans to change its name to Cox Communications within a year after closing.
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