Cable giants Charter, Cox to merge as industry faces threats on all sides

Charter Communications and Cox Communications will merge in a deal that combines two of the three biggest U.S. cable companies as their industry faces threats from cord-cutting and wireless competition.

Charter, which sells its service under the Spectrum brand in many areas, would acquire Cox under the $34.5 billion agreement. Charter has more than 30 million customers, making it the second-largest U.S. cable provider behind Comcast; Cox has about 6.5 million.

The companies said Friday that the merger would better position them to compete as cord-cutters have switched to streaming services, Big Tech companies have encroached on advertising and wireless providers have started offering internet service.

Executives said consolidation would let them invest more in products and services, as they face off with AT&T, Verizon, T-Mobile, DirecTV and other providers in different areas.

Wireless providers have gained ground in the U.S. broadband market with their 5G networks. Verizon had about 4.6 million “fixed wireless subscribers” at the end of 2024 and T-Mobile had 6.4 million high-speed internet customers.

Company officials said Charter and Cox have little geographic overlap. Charter has large networks in the Northeast, the Midwest, the Carolinas, Alabama, central Florida, Southern California and parts of Texas, as well as smaller holdings in other states. Cox is mostly concentrated in certain regions in a handful of states, including Virginia, Massachusetts, Georgia, Louisiana, Kansas, Oklahoma, Nevada, Arizona and California.

“Our footprint will now include key, attractive growing markets like Phoenix and Las Vegas,” and span 46 states, passing nearly 70 million homes and businesses, Charter President and CEO Chris Winfrey said on a call with analysts.

The combined entity will adopt the Cox Communications name within a year of the deal closing, the companies said. Spectrum will become the consumer-facing brand. Charter’s hyperlocal Spectrum News stations will be expanded to Cox’s service areas, the release said.

Cox’s customer service functions would be brought back to the United States, the companies said. Since the Trump administration started a trade war and started calling on U.S. employers to bring operations to the United States, many of them have announced plans to expand their domestic operations.

Cox customers will get access to Charter’s pricing and packaging structures, which let residential customers change providers at any time without early termination fees, the companies said.

Cox Enterprises will own about 23% of shares in the combined company.

Shares of Charter rose more than 1 % Friday after the deal was announced. Although the deal is valued at $34.5 billion, Charter is paying just $4 billion in cash; the remainder includes stock and $12 billion in debt assumed from Cox.

Winfrey will continue in his role once the merger goes through. Cox’s chairman and chief executive Alex Taylor will become board chairman.

The deal, which must still be approved by Charter shareholders, is expected to close at the same time as Charter’s previously announced acquisition of Liberty Broadband, the companies said.