Charter and Cox to Merge in $34.5 Billion Deal, Creating Cable and Wi-Fi Giant

Charter Communications and Cox Enterprises on Friday said they are merging in a $34.5 billion deal, creating a juggernaut in cable and Wi-Fi.

The proposed merger comes as cable providers continue to bleed video subscribers and look to have more scale into their more stable broadband businesses. The announcement is the rare M&A deal this year, when a topsy-turvy stock market and economics news have kept companies on the sidelines.

At the same time, lots of companies will watch these deal closely as it will be a test case for President Donald Trump’s regulators who were believed would go softer on big M&A.

If the deal is given the green light, the combined company will be based out of Stamford, Connecticut, but will keep Cox’s Atlanta campus. The combined company would go under the Cox name.

“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,” Chris Winfrey, Charter president and CEO said in a statement. “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.”

“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,” Cox Enterprises chairman and CEO Alex Taylor added.

“Charter’s board and I are excited about this transaction and very supportive of Alex stepping into the board Chairman role,” Eric Zinterhofer, chairman of Charter’s Board of Directors, echoed. “The combination of Cox Communications with Charter is an excellent outcome for our collective shareholders, customers, employees and the industry.”

More to come…

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