Charter Communications (NASDAQ: CHTR) headquartered in Stamford, CT and Cox Communications, a subsidiary of privately held Cox Enterprises based in Atlanta agreed to merge their mobile, broadband, video, and customer service businesses. The deal values Cox Communications at approximately $34.5 billion, including $12 billion in debt, based on a trading multiple of 6.44x.
Cox Communications is the third largest cable television company in the U.S., behind Comcast (NASDAQ: CMCSA) and Charter, according to Inside Towers Intelligence. Cox’s network passes more than 12 million homes across 18 states, from California to Virginia. Cox serves 6.5 million customers with digital cable, internet, telephone, and home security services. In its Q1 2025 earnings report, Charter, operating under the Spectrum brand, reported more than 57 million homes passed and connections to 31.3 million residential and small business customers across 41 states. The combined company would become America’s largest cable TV and broadband provider by subscribers, surpassing Comcast.
Both companies own 3.5 GHz CBRS spectrum. In FCC Auction 105, Cox spent $213 million on 470 Priority Access Licenses in 173 counties, while Charter paid $464 million for 210 PALs in 106 counties, Inside Towers reported. Both cablecos bundle mobile services with broadband. Cox operates as an MVNO on Verizon (NYSE: VZ) and T-Mobile (NASDAQ: TMUS) networks. Charter, also a Verizon MVNO, says it is developing its own CBRS wireless infrastructure to generate new revenue, stem broadband losses to competitors, and reduce reliance on Verizon.
Charter will acquire Cox’s commercial fiber and IT/cloud businesses. Cox will contribute its residential cable business to Charter Holdings, a subsidiary of Charter. Within a year after closing, the combined company will change its name to Cox Communications. Spectrum will be the consumer-facing brand within the communities Cox serves.
The combined company will remain headquartered in Stamford and maintain a significant presence on Cox’s Atlanta campus. Charter CEO Chris Winfrey will remain as CEO of the new organization, and Cox Enterprises CEO Alex Taylor will serve as chairman.
With planned investments in cable and wireless infrastructure expansion and development of third-party services, the combined business is projected to generate higher cash flow per passing while reducing capital expenditure and operating expense per passing. Charter projects approximately $500 million of annualized cost synergies within three years of closing.
By John Celentano, Inside Towers Business Editor
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