Wedoany.com Report-May 24, Charter Communications and Cox Communications have agreed to merge their operations, forming a leading entity in mobile, broadband, video entertainment, and customer service. The deal aims to enhance services for customers, employees, and communities across the United States while delivering value to shareholders.

The merged company will expand Spectrum News stations into Cox’s service areas, offering localized news coverage. It will prioritize high-quality service, maintain robust network security, and support third-party platform development. Customers in Cox’s regions will have the option to choose cost-effective bundled Spectrum services or retain their existing plans. The merger is expected to create jobs in the U.S. and achieve approximately $500 million in annual cost savings within three years of completion.

Tom Rutledge, CEO of Charter Communications, stated: “This combination brings together two companies with complementary strengths to deliver superior connectivity and entertainment experiences for millions of Americans.” Alex Taylor, CEO of Cox Enterprises, added: “We’re excited to join forces with Charter to create a stronger, customer-focused company that will drive innovation and value for communities nationwide.” These statements reflect a shared commitment to improving service and innovation.

The transaction values Cox Communications at an enterprise value of about $34.5 billion, aligned with Charter’s 2025 estimated Adjusted EBITDA multiple. Charter will acquire Cox’s commercial fiber, managed IT, and cloud businesses, while Cox Enterprises will contribute its residential cable operations to Charter Holdings, a subsidiary partnership. Charter will pay Cox Enterprises $4 billion in cash, $6 billion in convertible preferred units, and approximately 33.6 million common units valued at $11.9 billion. After the merger, Cox Enterprises will hold roughly 23% of the combined company’s fully diluted shares, factoring in the Liberty Broadband merger.

The combined entity will adopt the Cox Communications name within a year of closing, with Spectrum as the consumer brand in Cox’s markets. The headquarters will remain in Stamford, Connecticut, while maintaining a significant operational presence at Cox’s Atlanta campus. The merger is set to strengthen the companies’ ability to deliver reliable, high-quality services across a broader footprint.