Cable giants Cox and Charter agree to $34 billion merger
Two of the largest cable companies in the US are intent on merging. Charter Communications’ proposed acquisition of Cox Communications — the largest division of Cox Enterprises — will value the former at over $34 billion inclusive of debt.
In Cox Communications, the Cox family, which acquired its first cable business in 1962, already operates the largest private broadband company in America, supplying homes in more than 30 states, and it will be the majority shareholder in the acquisition with a stake of around 23 percent. In a press release, Charter said it will inherit Cox Communications’ commercial fiber and managed IT and cloud businesses, while Cox Communications' residential cable business will move to Charter’s Charter Holdings subsidiary.
"Cox and Charter have been innovators in connectivity and entertainment services – with decades of work and hundreds of billions of dollars invested to build, upgrade, and expand our complementary regional networks to provide high-quality internet, video, voice and mobile services," said Chris Winfrey, President and CEO of Charter. "This combination will augment our ability to innovate and provide high-quality, competitively priced products, delivered with outstanding customer service, to millions of homes and businesses."
The new combined company will continue to operate its cable, broadband and mobile consumer businesses under Charter’s Spectrum brand, and said it will offer existing customers the choice to stick with their current plans or pay less for new bundled services it intends to offer.
Of course, such mega-mergers are rarely cut and dried. Rivals, like Comcast, might attempt to scuttle the deal, while government antitrust enforcers may also not allow the transaction to go through.This article originally appeared on Engadget at https://www.engadget.com/big-tech/cable-giants-cox-and-charter-agree-to-34-billion-merger-140652859.html?src=rss