US cable giants Charter and Cox, under assault by
streaming services, pursue $34.5 billion merger
[May 17, 2025] By
MICHELLE CHAPMAN
Charter Communications has offered to acquire Cox Communications, a
$34.5 billion merger that would combine two of the top three cable
companies in the U.S.
Cox is the third largest cable television company in the country, with
more than 6.5 million digital cable, internet, telephone, and home
security customers. It has a strong foothold in states spanning from
California to Virginia. Charter Communications, known more widely as
Spectrum, has more than 32 million customers in 41 states.
The cable industry has been under assault for years from streaming
services like Disney, Netflix, Amazon and HBO Max, as well as internet
plans offered by mobile phone companies. 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.
“This merger exemplifies the strategic consolidation reshaping media and
telecom," Scott Purdy, KPMG U.S. Media Industry Lead, Strategy, said in
a statement. “By pooling resources, these companies will create scale,
drive significant cost synergies, and strengthen their competitive
positioning in a challenging market.”
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This April 1, 2015, file photo, shows a Charter Communications van
in St. Louis. (AP Photo/Jeff Roberson, File)
 The proposed deal is one of the
largest in over a year. Mars' announced a $30 billion deal with
Kellanova last summer and Exxon Mobil's approximately $60 billion
acquisition of Pioneer Natural happened in late 2023.
The combined company will change its name to Cox Communications
within a year after closing. It will keep Charter’s headquarters in
Stamford, Connecticut, and have a significant presence on Cox’s
Atlanta, Georgia campus following the closing.
After the deal is complete, Charter CEO Chris Winfrey will become
president and CEO of the combined company. Cox CEO and Chairman Alex
Taylor will serve as chairman.
Cox will be able to keep two directors on the 13-member board.
Advance/Newhouse, which is part of Charter, will retain its two
board members.
The transaction is expected to close at the same time as Charter's
merger with Liberty Broadband, which was approved by Charter and
Liberty Broadband stockholders in February.
Shares of Charter rose slightly in afternoon trading. Cox is a
private company.
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