US cable giants Charter and Cox pursue $34.5 billion merger

Charter Communications is merging with Cox Communications in an approximately $34.5 billion deal that brings together two of the biggest cable companies in the country

Charter Communications has offered to acquire Cox Communications, a $34.5 billion merger that would combine two of the largest cable companies in the U.S.

Cox is the third largest cable television company in the country, with more than 6.5 million digital cable, internet, telephone, and home security customers. Charter Communications, known to many as Spectrum, has more than 32 million customers in 41 states.

Charter said Friday that it will acquire Cox Communications’ commercial fiber and managed IT and cloud businesses. Cox Enterprises will contribute Cox Communications’ residential cable business to Charter Holdings, an existing subsidiary partnership of Charter.

Cox Enterprises will own about 23% of the combined company's outstanding shares.

The transaction, which needs approval from Charter shareholders as well as regulators, includes $12.6 billion in debt.

The combined company will change its name to Cox Communications within a year after closing. It will keep Charter’s headquarters in Stamford, Connecticut, and have a significant presence on Cox’s Atlanta, Georgia campus following the closing.

After the deal is complete, Charter CEO Chris Winfrey will become president and CEO of the combined company. Cox CEO and Chairman Alex Taylor will serve as chairman.

Shares of Charter rose 6% before the market open. Cox is a private company.