Charter & Cox Announce Mega-Merger
• Two of the nation’s biggest cable companies, Charter Communications and Cox Communications, announced they will merge in a deal valued at $34.5 billion.
As reported by Variety, Charter will acquire Cox Communications’ commercial fiber and managed IT and cloud businesses, and Cox Enterprises will contribute Cox Communications’ residential cable business to Charter Holdings, an existing subsidiary partnership of Charter. Within a year after the closing, the combined company will change its name to Cox Communications.
Charter’s Spectrum will become the consumer-facing brand within the communities Cox serves. The combined company will remain headquartered in Stamford, CT, and will maintain a significant presence on Cox’s existing Atlanta campus following the closing.
“We’re honored that the Cox family has entrusted us with its impressive legacy and are excited by the opportunity to benefit from the terrific operating history and community leadership of Cox,” said Charter President & CEO Chris Winfrey. “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. We will continue to deliver high-value products that save American families money, and we’ll onshore jobs from overseas to create new, good-paying careers for U.S. employees that come with great benefits, career training and advancement, and retirement and ownership opportunities.”
Winfrey will become President & CEO of the new combined company while Alex Taylor, Chairman and CEO of Cox, will serve as Chairman.
Charter currently expects approximately $500 million of annualized “cost synergies” achieved within three years of close, “stemming from typical procurement and overhead savings.” The complete Charter/Cox corporate press release is posted HERE.
