The two largest cable companies in the United States intend to merge. Charter Communications proposes acquiring Cox Communications, the largest division of Cox Enterprises, to value the former more than $34 billion, including debt.
In Cox Communications, the Cox family acquired its first cable business in 1962 and already operates the largest private broadband company in the United States, providing homes to more than 30 states, and it will become the acquisition of approximately 23% of the shares. Charter said in a press release that it will inherit Cox Communications' commercial fiber and manage the cloud business, while Cox Communications' residential wired business will be transferred to Charter's Charter Holdings subsidiary.
“Cox and Charter have been innovators in the connectivity and entertainment services sectors – decades of work and tens of billions of dollars are spent building, upgrading and expanding our complementary regional network to deliver high-quality internet, video, voice and mobile services,” said Chris Winfrey. “This combination will enhance our innovation and delivering high-quality, competitively priced products and delivering excellent customer service and delivering millions of homes and businesses.”
The new merged company will continue to operate its wired, broadband and mobile consumer businesses under the Charter's Spectrum brand and said it will choose to stick to its current plans or pay for the new bundled services it intends to offer.
Of course, this large malt is rarely cut and dried. Like Comcast, competitors may try to cut the deal, and government antitrust executors may not allow the deal to be completed.
