Charter and Cox To Merge in $34.5B Deal To Battle Streaming and Wireless Rivals

In a deal worth $34.5 billion, Charter and Cox are looking to merge. Facing constant threats from streaming services and wireless providers, a combined cable, mobile, and internet behemoth would lay the foundation to “aggressively compete” in the marketplace.

The newly merged company will be named Cox Communications, with Spectrum remaining as Cox’s consumer-facing brand. Current Cox customers can expect Charter’s subscription plans alongside “simple and transparent pricing.” TV, internet, and mobile services will continue to be available.

“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,” said Charter CEO Chris Winfrey, per The Verge.

It’s unclear when the deal will ultimately close. A merger of two of the largest cable companies in the U.S. will need regulatory approval from the Federal Communications Commission (FCC).

The Charter and Cox Merger

Broadband companies like Cox and Charter have been losing ground to wireless providers as alternative internet services, such as 5G, continue to lure customers. In addition, streaming services have been successfully enticing customers to cancel traditional cable TV, substantially hurting the two companies’ core businesses.

At the end of the first quarter, Charter lost 60,000 broadband customers. During the same period, just over 180,000 customers dropped the company’s cable TV service.

To retain customers, Charter has been bundling mobile service with its other products. The company reported that it had 10.5 million mobile customers in the last quarter. Charter has services available to 57 million homes and businesses across 41 states.

With access to 12 million homes, consumers in over 30 states can sign up for Cox services. Cox, which is the biggest privately held broadband company in the United States, expanded into mobile services just two years ago.

According to CNBC, Winfrey will remain as CEO, leading the merged company. Meanwhile, Cox’s CEO, Alex Taylor, will be chairman of the newly formed company’s board.

Another major merger of entertainment giants almost happened last year. Satellite TV providers DirecTV and Dish Network agreed to combine, which would have created the largest pay TV provider in the country. However, the deal ultimately fell apart.