Spectrum, a leading US cable provider, has agreed to acquire Cox Communications in a massive $34.5 billion deal. The combined entity will be one of the top three cable companies in the country, with over 38 million customers across 41 states. This merger comes amid increasing competition from streaming services and cord-cutting trends.
Charter Communications will acquire Cox’s commercial fiber and IT services, while Cox Enterprises will retain its residential cable business. The deal requires approval from Charter shareholders and regulators, with $12.6 billion in debt involved. After closing, the company will be rebranded as Cox Communications, retaining its headquarters in Stamford, Connecticut, and maintaining a significant presence in Atlanta, Georgia.
Charter’s CEO Chris Winfrey will lead the combined entity, while Alex Taylor, Cox’s CEO and Chairman, will take on the role of chairman. The deal is one of the largest in over a year, following Mars’ $30 billion acquisition last summer and Exxon Mobil’s $60 billion acquisition of Pioneer Natural in 2023.
The merger is expected to close alongside Charter’s merger with Liberty Broadband, which was approved by stockholders in February. As a result, shares of Charter rose more than 4% before the market opened, as news of the deal spread.
Source: https://www.cbsnews.com/news/charter-cox-merger-cable