Charter Communications buys Cox Communications for $21.9 billion, creating cable and broadband powerhouse.

From Yahoo Finance: 2025-05-16 04:12:00

Charter Communications acquires Cox Communications for $21.9 billion, creating a powerhouse in cable and broadband. The deal will boost Charter’s ability to offer bundled services amid competition from streaming giants and mobile carriers. The merger, subject to antitrust review, will create the largest U.S. cable TV and broadband provider with 38 million subscribers.

Charter CEO Chris Winfrey will lead the combined company, emphasizing innovation and competitive pricing. U.S. Senator Amy Klobuchar urges antitrust enforcers to ensure the merger does not harm consumers or stifle competition in cable and broadband markets. The deal will be a major test of M&A regulation under the Trump administration.

Analysts believe there is minimal direct competition between Charter and Cox, lessening antitrust concerns. The DOJ will focus on whether the merged company will have leverage over rivals. Charter’s acquisition of Time Warner Cable in 2016 provides insight into DOJ’s approach to preventing anti-competitive behavior in the industry.

In an effort to address antitrust concerns, Charter plans to bring Cox’s customer service jobs back to the U.S. Analysts suggest that the merger may pass regulatory scrutiny in the current deregulatory environment. The companies expect $500 million in cost savings within three years of closing the deal.

Under the cash-and-stock deal, Charter will take on $12.6 billion of Cox’s debt, with Cox Enterprises retaining a 23% stake in the merged entity. The combined company will rebrand as Cox Communications, with headquarters in Stamford, Connecticut, and a significant presence in Atlanta, Georgia. Discussions between Charter and Cox have occurred on and off since 2013.

Billionaire John Malone supports Charter’s merger plans, as Liberty Broadband shareholders will gain a direct interest in Charter. Financial advisors and legal counsels from Citi, LionTree, Wachtell, Lipton, Rosen & Katz, Allen & Company, BDT & MSD Partners, Evercore, and Wells Fargo are involved in the deal. The merger is expected to close in mid-2026.



Read more at Yahoo Finance: Spectrum owner Charter to buy Cox for $21.9 billion in mega cable deal