Charter Communications and Cox Communications, two major U.S. cable companies, have announced a merger valued at $34.5 billion, marking one of the largest corporate deals this year. This valuation includes $21.9 billion in equity and approximately $12.6 billion in net debt. Following the announcement, Charter’s stock rose about 8% in premarket trading, reflecting investor optimism.
Charter, the second-largest publicly traded cable company after Comcast, reported having 30 million broadband customers as of Q1, despite a loss of 60,000 customers in that quarter. The company has been adversely affected by rising competition from wireless internet options, including 5G. With a broader shift away from traditional cable TV, Charter also experienced a decline of 181,000 cable TV customers.
In contrast, Cox, still privately held by the Cox family, serves approximately 6.5 million residential and commercial customers across 18 states. Cox entered the mobile market in 2023 and reported $12.6 billion in revenue for 2020. Post-merger, Cox Enterprises will retain about 23% of the new entity’s shares, and the combined company will adopt the Cox Communications name.
Charter’s current headquarters will remain in Stamford, Connecticut, with ongoing operations in Atlanta. Chris Winfrey, Charter’s CEO, will continue as president and CEO, while Alex Taylor of Cox Enterprises will serve as board chairman. The merger is anticipated to yield around $500 million in annual cost synergies within three years and is expected to finalize alongside Charter’s previous merger with Liberty Broadband.
The deal highlights the ongoing transformation in the broadband and cable industry amid fierce competition, particularly from mobile internet providers.
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