By Michelle Chapman
Charter Communications is offering to acquire Cox Communications, a $34.5 billion merger that combines two of the top three US cable companies.
Cox is the country’s third largest cable television company with over 6.5 million digital cable, internet, telephone and home security customers. There is a strong footing in the states that span California and Virginia. More widely known as Spectrum, Charter Communications has over 32 million customers in 41 states.
The cable industry has been attacked for years from streaming services such as Disney, Netflix, Amazon, HBO Max, and internet plans offered by mobile phone companies. About the same size as the charter, Comcast spun many of its cable television networks in November as consumers increasingly exchange cable television subscriptions for streaming platforms.
The so-called “cordcut” was the industry’s cost millions of customers and was looking for ways to compete successfully.
Charter said Friday it would acquire, manage, and manage Cox Communications’ commercial textiles and manage the cloud business. Cox Enterprises will provide Cox Communications’ residential cable business to Charter Holdings. This is an existing subsidiary partnership for charter.
Cox Enterprises owns approximately 23% of the company’s outstanding shares.
The transaction, which requires approval from Charter shareholders and regulatory authorities, includes $12.6 billion in liability.
The proposed transaction is one of the biggest transactions in over a year. Mars announced a $300 billion deal with Keranova last summer, with the approximately $60 billion acquisition of ExxonMobil’s Pioneer Natural occurring in late 2023.
The total company will change its name to Cox Communications within one year of closing. It maintains its charter headquarters in Stamford, Connecticut, and has a major presence on the Cox campus in Atlanta, Georgia after its closure.
After the contract is completed, Charter CEO Chris Winfrey will become the president and CEO of the Total Company. Cox CEO and Chairman Alex Taylor will serve as chairman.
Cox is able to maintain two directors on a 13-member board of directors. Advance/Newhouse, part of the Charter, will hold two board members.
The deal is expected to close at the same time as the charter merger with Liberty Roadband, approved by Charter and Liberty Roadband shareholders in February.
Charter stocks rose more than 4% before the market opened. Cox is a private company.
Original issue: May 16th, 2025, 12:17pm EDT
