Charter Communications has agreed to acquire Cox Communications for $21.9 billion, creating the largest cable and broadband operator in the U.S. with about 38 million subscribers, surpassing Comcast.
This merger aims to strengthen competitiveness against streaming services and mobile operators, as many consumers are cutting traditional pay-TV in favor of internet services.
Charter, which leases wireless networks from Verizon, seeks to combine internet, TV, and mobile services into a single customizable package.
The deal is drawing regulatory scrutiny: Senator Amy Klobuchar urges a thorough review of the merger’s impact on competition and consumers. The U.S. Department of Justice will examine the deal with attention to the company’s potential increased market power.
Charter CEO Chris Winfrey stated the combined company will create jobs in the U.S., including bringing some customer service jobs back from overseas.
The companies expect to save around $500 million over three years after the deal closes, which is planned for mid-2026.
The deal provides that Cox Enterprises, the parent company, will receive about 23% ownership in the new entity, and its CEO Alex Taylor will lead the board.
After completion, the company will change its name to Cox Communications, keeping the Charter Spectrum brand for consumers, with headquarters remaining in Stamford, Connecticut, and Atlanta, Georgia.