The proposed merger creating the largest US cable provider could face antitrust hurdles.
Charter Communications has agreed to buy rival Cox Communications for $21.9 billion in a deal that unites two of the nation’s largest cable and broadband operators as they battle the customer-facing streaming giant and mobile carriers.
The deal, announced Friday, has been more than a decade since the company reportedly waived its early merger attempt. Since then, pressure has increased on cable companies, and wireless carriers have been attracting broadband customers with aggressive plans, dumping millions of traditional Pay-TVs on streaming.
The company said it hopes to achieve a $500 million cost savings within the three years expected to be traded in mid-2026.
Under the cash and inventory agreement, the Charter assumes Cox’s net debt and other obligations of approximately $12.6 billion, giving the transaction a corporate value of $34.5 billion.
Cox Enterprises, a family-owned parent at Cox Communications, owns approximately 23% of the merged entities and is chaired by CEO Alex Taylor.
The combined company will be rebranded within a year of the end of trading as Cox Communications, and Charter’s Spectrum is a consumer brand. It will maintain its headquarters in Stamford, Connecticut, while maintaining a significant presence on the Cox campus in Atlanta, Georgia.
This year’s merger with Cox, one of the biggest global deals, will help charters bundle broadband and mobile services, helping them dodge competition with airlines.
Analysts show the benefits of charter strategies to combine internet, television and mobile services into a single customizable package, but cable companies rely on leasing network access from key carriers to provide mobile plans, so scale is needed.
“This combination strengthens our ability to innovate and deliver high-quality, competitively priced products,” said Chris Winfrey, charter CEO who leads the total company.
The market value of the spectrum owner is nearly $600 billion.
On Wall Street, charter stocks rose in news of a potential merger. As of ET (16:00 GMT), stocks have grown 1.66% since the market was opened.
Antitrust concerns
The merger was one of the first major tests of M&A regulations under the control of US President Donald Trump, surpassing current market leader Comcast and creating the largest US cable television and broadband provider with around 38 million subscribers.
It could be reviewed by the antitrust division of the US Department of Justice. Attorney General Gale Slater, who leads the division, has made it clear that he intends to focus on mergers that reduce competition in ways that harm consumers and workers.
Emarketer analyst Ross Benes said the merged entity will become the largest pay television operator in the United States, but for consumers, “the ISP (internet service provider) side is more consequential and could position it as a regional monopoly.”
Winfrey repeated Trump’s “America First” employment priorities and said the deal would bring Cox’s customer service jobs back from overseas, but he did not identify how many. Charter’s customer service team is already fully based in the US.
“This is the first big corporate move that has happened under the new Trump administration, so we’ll set the tone for other potential moves.”
According to media reports, Charter and Cox also discussed the merger in 2013 before shelving the plans. But speculation has risen again in recent months when cable billionaire John Malone said in November that he should be allowed to merge with rivals such as Cox, shortly after Charter agreed to buy his liberty broadband.
Liberty Broadband shareholders receive direct benefits to the Charter based on their terms and conditions of transaction with COX.