Charter Communications is set to merge with Cox Communications, marking a significant development in the U.S. cable industry.
This merger stands out as one of the largest corporate transactions of the past year across various sectors.
The agreement puts Cox’s enterprise value at $34.5 billion, which includes $21.9 billion in equity and $12.6 billion in net debt and associated obligations. This valuation aligns with Charter’s current enterprise value, based on projected adjusted earnings before interest, taxes, depreciation, and amortization for 2025, according to a press release issued on Friday.
Charter, the second-largest publicly traded cable company, experienced an uptick in premarket trading following its last closing price of $419.57. Cox, which remains under the ownership of the Cox family, is also among the largest cable service providers in the country.
According to the announcement, Cox Enterprises will hold approximately 23% of the newly merged company’s shares on a fully diluted basis.
Once the merger is finalized, the combined entity will adopt the name Cox Communications within one year. Charter’s existing brand, Spectrum, will continue to serve as the consumer-facing identity for all service lines, including cable, broadband, and mobile.
The headquarters of the new company will be established at Charter’s current location in Stamford, Connecticut, while maintaining a substantial operational presence in Atlanta, the home city of Cox.
Chris Winfrey, the current CEO of Charter, will continue to hold the position of president and CEO after the merger. Alex Taylor, who serves as chairman and CEO of Cox Enterprises, is slated to become the chairman of the board for the merged company. Additionally, another executive from Cox will join the board, and the Cox family will retain the right to appoint two board members.
This merger announcement comes on the heels of Charter’s prior agreement to acquire Liberty Broadband through an all-stock transaction, which aims to simplify the holdings of cable magnate John Malone. Stockholders from both Charter and Liberty Broadband had approved this earlier deal in February.
The merger with Cox is expected to be finalized concurrently with the Liberty Broadband transaction, as stated in the release on Friday.
The story is ongoing, and updates will follow as more information becomes available.
Disclosure: Comcast is the parent company of Finance Newso.
