Charter and Cox Announce $34.5 Billion Merger

Charter Communications, Inc., the parent company of Spectrum, and Cox Communications have announced a definitive agreement to merge, combining their broadband, mobile, and video operations in a transformative deal valued at $34.5 billion. The merger is set to create one of the largest communications service providers in the United States.

“This is a transformative moment,” said Chris Winfrey, President and CEO of Charter. “We’re honored that the Cox family has entrusted us with their incredible legacy. This combination will allow us to deliver high-quality, competitively priced products with outstanding customer service to millions of homes and businesses.”

Under the agreement, Charter will acquire Cox’s commercial fiber, managed IT, and cloud services, while Cox Enterprises will contribute its residential cable operations to Charter Holdings, a subsidiary partnership of Charter.

As part of the transaction, Cox Enterprises will receive $4 billion in cash, $6 billion in convertible preferred units, and approximately 33.6 million common units in Charter’s partnership.

Cox Enterprises will have anestimated 23% ownership stake in the newly combined company, assuming all units are converted.

The merger also involves Charter assuming approximately $12 billion in Cox’s debt. The transaction is pending regulatory approvals and a vote by Charter’s shareholders.

Following the completion of the merger, expected within the next year, the company will adopt the Cox Communications name. The Spectrum brand will continue to be used in consumer markets, especially in areas currently served by Cox. The combined company will maintain its headquarters in Stamford, Connecticut, while maintaining an operational presence at Cox’s Atlanta, Georgia campus.

Charter CEO Chris Winfrey will become president and CEO of the combined company. Cox CEO and Chairman Alex Taylor will serve as chairman.

Following the closing, the combined company’s products will launch for Cox’s existing customers, under the Spectrum brand – including Spectrum’s Advanced WiFi, Spectrum Mobile, the Spectrum TV App, Seamless Entertainment and Xum. When combined with Spectrum’s pricing and packaging structure, the company will provide Cox customers the choice to pay less for new Spectrum bundled services or to keep their current plans. 

Cox customers will have access to Charter’s pricing and packaging structure, including no annual contracts for any residential services, which means customers will be free to change service providers at any time, with no risk of early termination fees.