Charter & Cox Merge in $34.5B Mega-Deal to Reshape Telecom Landscape
The Big Picture:
Charter Communications (NASDAQ: CHTR) and Cox Communications have agreed to a $34.5 billion merger, creating a U.S. connectivity powerhouse poised to challenge streaming and wireless giants.
Why This Matters
✅ Scale Unleashed:
- Combines Charter’s Spectrum with Cox’s fiber/cable assets
- New entity to serve ~75M+ homes/businesses post-integration
✅ Strategic Shifts:
- Cox brand resurrected (corporate name)
- Spectrum remains consumer-facing in Cox markets
- Cox Enterprises gets 23% stake + $4B cash
✅ Battle-Ready:
- Targets 5G/WiFi convergence gaps
- Expands managed IT/cloud services for enterprises
.
- Exclusive NYC Luxury Yacht & Networking Escape for Visionaries… – Click Here
.
From Benzinga: Charter Seals $34.5 Billion Cox Merger Deal, Creating Powerhouse To Battle Streaming, Wireless Rivals
Charter Communications Inc. (NASDAQ:CHTR) and Cox Communicationson Friday announced an agreement to combine their businesses in a transaction that will create an industry leader in mobile and broadband communications services, seamless video entertainment, and high-quality customer service.
The proposed transaction valued Cox Communications at an enterprise value of approximately $34.5 billion, comprising $21.9 billion of equity and $12.6 billion of net debt and other obligations.
Charter will acquire Cox Communications’ commercial fiber, managed IT, and cloud businesses, and Cox Enterprises will contribute Cox Communications’ residential cable business to Charter Holdings, an existing subsidiary partnership of Charter.
.
- MAX ENERGY DANCE PARTY – NYC… – Click Here
.
Cox Enterprises will receive $4 billion in cash, $6 billion notional convertible preferred units in Charter’s existing partnership, and approximately 33.6 million common units in Charter’s existing partnership, with an implied value of $11.9 billion, which are exchangeable for Charter common shares.
Cox Enterprises will own approximately 23% of the combined entity’s fully diluted shares outstanding. The combined entity will assume Cox’s roughly $12 billion outstanding debt.
The combined company will change its name to Cox Communications within a year of the closing. Spectrum will become the consumer-facing brand within the communities Cox serves.
.
- Exclusive NYC Luxury Yacht & Networking Escape for Visionaries… – Click Here
.
The combined company will remain headquartered in Stamford, CT, and will maintain a significant presence on Cox’s Atlanta, GA, campus following the closing.
Charter CEO Chris Winfrey will continue in his current role as CEO and board member. Cox Enterprises Chair and CEO Alex Taylor will join the board as Chair.
Cox will have the right to nominate an additional two board members to Charter’s 13-member board. Advance/Newhouse, another storied cable innovator that contributed its operations to Charter’s partnership in 2016, will retain its two board nominees.
Liberty Broadband will cease to be a direct shareholder in Charter and will no longer designate directors for election to the Charter Board. Accordingly, the three current Liberty Broadband nominees on Charter’s board will resign at closing. Liberty Broadband shareholders will receive direct interests in Charter as a result of the Liberty Broadband merger.
In 2024, Charter agreed to buy Liberty Broadband Corp in an all-stock transaction in which Liberty Media Chair John Malone held significant interests. Malone remains the Chair of Liberty Broadband.
Charter stock surged over 20% year-to-date.
Charter had reported fiscal first-quarter revenue growth of 0.4% to $13.74 billion, beating the analyst consensus estimate of $13.68 billion. EPS of $8.42 missed the analyst consensus estimate of $8.67.
Charter lost 60,000 internet customers, including approximately 9,000 customer disconnects related to the wildfires in California in January, compared to a decline of 72,000 during the first quarter of 2024.
Charter held $796 million in cash and equivalents as of March 31.
.
- Exclusive NYC Luxury Yacht & Networking Escape for Visionaries… – Click Here
.
Cable companies are grappling with rivalry from wireless giants like AT&T Inc. (NYSE:T) and T-Mobile US Inc. (NASDAQ:TMUS), which are snatching their broadband customers with attractive internet offerings. Meanwhile, streaming companies like Netflix Inc. (NASDAQ:NFLX) have disrupted the traditional pay-TV business.
CHTR Price Action: At the last check on Friday, Charter Communications stock was up 4.63% to $439 the premarket.
Photo by Piotr Swat via Shutterstock
Up Next: Transform your trading with Benzinga Edge’s one-of-a-kind market trade ideas and tools. Click now to access unique insights that can set you ahead in today’s competitive market.
Get the latest stock analysis from Benzinga?
This article Charter Seals $34.5 Billion Cox Merger Deal, Creating Powerhouse To Battle Streaming, Wireless Rivals originally appeared on Benzinga.com
© 2025 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
