Charter and Cox Pursue $34.5 Billion Merger Amid Streaming Threat

Charter Communications has announced plans to acquire Cox Communications for $34.5 billion which would create a single major cable provider in the United States. The companies seek this merger to battle the growing popularity of streaming services including Netflix, Disney+ and Amazon Prime.

Cox operates as the third-largest cable TV provider in the United States while delivering services to more than 6.5 million subscribers across various states stretching from California to Virginia. The Spectrum brand operated by Charter serves 32 million subscribers across 41 states.

The cable TV industry faces continuous subscriber loss because viewers choose streaming services over traditional cable television. Charter will acquire Cox's residential cable operations together with its commercial fiber and IT and cloud business segments. The ownership structure of the combined entity will give Cox Enterprises control of approximately 23% of the company.

The merged company will operate under the Cox Communications brand from Stamford Connecticut while maintaining significant operations at the Atlanta campus. The new company will be led by Charter CEO Chris Winfrey who will serve under the chairmanship of Cox CEO Alex Taylor. The acquisition needs regulatory and shareholder backing before completion while carrying $12.6 billion in debt.

The deal represents one of the biggest transactions from the past year after Mars acquired Kellanova for $30 billion and Exxon Mobil bought Pioneer for $60 billion. The merged company aims to establish itself as a leading force in broadband and mobile and video services by transforming to a streaming-based business model.