By Mallory Mattingly
Two of the nation’s biggest cable companies — Charter Communications, better known as Spectrum, and former rival Cox Communication — are merging, as Charter buys Cox.
The deal is valued at $34.5 billion, which includes any debt between the two companies, according to CNN.
“Charter Communications, Inc. (NASDAQ: CHTR) (along with its subsidiaries, ‘Charter’) and Cox Communications (‘Cox’) today announced that they have entered into a definitive agreement to combine their businesses in a transformative transaction that will create an industry leader in mobile and broadband communications services, seamless video entertainment, and high-quality customer service delivering powerful benefits for American employees, customers, communities, and shareholders,” Charter announced in a statement.
CBS News said that Cox is the third largest cable company in America, “with more than 6.5 million digital cable, internet, telephone, and home security customers.” Charter, meanwhile, boasts more than 32 million customers.
President and CEO of Charter, Chris Winfrey, said, “We’re honored that the Cox family has entrusted us with its impressive legacy and are excited by the opportunity to benefit from the terrific operating history and community leadership of Cox. 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.”
The merge means that Charter will gain Cox’s commercial fiber and managed IT and cloud businesses. Cox Enterprises will “contribute Cox Communications’ residential cable business to Charter Holdings, an existing subsidiary partnership of Charter,” CBS said. The outlet also noted that the combined company will change its name to Cox Communications.
“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,” Winfrey continued. “We will continue to deliver high-value products that save American families money, and we’ll onshore jobs from overseas to create new, good-paying careers for U.S. employees that come with great benefits, career training and advancement, and retirement and ownership opportunities.”
Cox believes the deal will serve their customers well.
Related: New Deal Gives Spectrum Customers Free Access To Disney+
“Our family has always believed that investing for the long-term and staying committed to the best interests of our customers, employees and communities is the best recipe for success,” said Alex Taylor, Chairman and CEO of Cox Enterprises. “In Charter, we’ve found the right partner at the right time and in the right position to take this commitment to a higher level than ever before, delivering an incredible outcome for our customers, employees, suppliers, and the local communities we serve.”
Charter’s Chairman of the Board of Directors, Eric Zinterhofer, talked about the excitement the two companies share in the new business venture.
“Charter’s board and I are excited about this transaction and very supportive of Alex stepping into the board Chairman role,” he said. “The combination of Cox Communications with Charter is an excellent outcome for our collective shareholders, customers, employees and the industry.”
Charter and Cox’s combination signals yet another change in the cable business.
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