Letter communications and Cox Communications, two of the largest cable companies in the USA, agreed to merge.
The agreement would be one of the largest in the industry, and throughout corporate America, in the last year.
The agreement values COX at $ 34.5 billion on a business base, composed of $ 21.9 billion of capital and $ 12.6 billion net debts and other obligations, in line with the recent business value of Charter based on 2025 estimated adjusted profits before interest, taxes, multiple multiple depreciation and amortization, according to a press release from Friday.
Charter shares: the second largest public negotiation cable company Comcast – Closed a little higher on Friday. Directed in private by the Cox family, COX is also among the largest cable suppliers.
In a Friday call with investors, the CEO of Charter, Chris Winfrey, described the “good for the United States” agreement and said “will return the jobs from abroad and create new sales and customer service races.”
The comment occurs when the activity of the corporate agreement has been slower than expected since President Donald Trump assumed the position.
After Trump won the elections, Wall Street recovered, since many expected the regulatory environment to loosen and flood doors opened for merchants and corporate leaders. But in the months after the elections, companies have been holding with other factors instead of doing business, such as the investigation of the Federal Communications Commission on the practices of diversity, equity and inclusion, and the result of Trump's tariffs.
Giant of Last Autumn Communications Verizon announced a proposed acquisition of $ 20 billion of border communications. However, the agreement has not yet received regulatory approval, since Verizon is being investigated for its practices ofi.
Winfrey de Charter said Friday that companies expect “to go through a complete process.”
The fusion with Cox arrives months after Charter announced that he would acquire Liberty Broadband in an agreement of the entire stock that simplifies the pioneer of the John Malone cable pioneer. In February, the Broadband Broadband shareholders of La Carta and Liberty approved the proposed agreement.
Charter hopes that there are about $ 500 million in annual cost synergies within three years after closing, according to the statement.
The merger agreement with Cox is expected to close at the same time as the merger of Broadband Liberty, the companies said on Friday. Winfrey said on Friday's call that it is difficult to point out time, but said: “We believe that it could be in the next year, in the middle of next year. But, of course, we will follow the example of regulators and we will work with them productively.”
Cable combo
Christopher L. Winfrey, CEO of Charter Communications.
Courtesy: Charter communications
The broadband industry has been holding with the heated competition of wireless competitors in recent years, since there has been an increase in alternative internet options at home such as 5G or the fixed wireless so -called. This follows the continuous loss of customers of the traditional cable television package.
Charter had 30 million broadband customers at the end of the first quarter, a 60,000 decrease in the previous period. It had around 12.7 million cable television customers, with 181,000 losses during the quarter.
Cable companies have begun to support their mobile businesses to retain customers, and Charter has been aggressive in their prices and grouping of mobile lines. Charter said he had 10.5 million mobile lines to the first quarter after informing another growth quarter.
The company provides its services in 41 states and is available for more than 57 million homes and companies. As of March 31, Charter said he had a total of 31.4 million customer relations.
Cox Communications, a Cox Enterprises division, tells itself as the largest private broadband company in the United States, and has approximately 6.5 million residential and commercial customers in total, according to its website.
Friday's investor, call CFO, Jessica Fischer, provided details about the Cox business. The company has 6.3 million customers, including 5.9 million registered on the Internet. Cox generated $ 13.1 billion in revenues in 2024, he said.
Cox services are available for 12 million homes, and their network infrastructure reaches more than 30 states. He began offering mobile devices in 2023.
The combined company network will cover approximately 46 states, which makes it available to almost 70 million homes and businesses, with 38 million customers, Winfrey said Friday.
In comparison, Comcast, the largest cable supplier in the United States, reported that it had approximately 51.4 million relations with total customers, including 17.8 million international clients. Comcast had approximately 34 million total national customers relations, and was available for almost 64 million homes and businesses in the United States as of March 31.
When closing the merger, Cox Enterprises will have approximately 23% of the completely diluted shares of the combined company in circulation, according to the statement.
The transaction will cause the combined company to change its name to Cox Communications within a year after the agreement is closed. Charter's spectrum, the brand in his cable, broadband, mobiles and other services, will become the consumer -oriented brand in all customers.
The combined company will face the current headquarters of Charter in Stamford, Connecticut, although it will maintain a significant presence in the Cox operations base in Atlanta after closing.
Winfrey de Charter will remain to the helm as president and CEO after the closing of the agreement. Meanwhile, Alex Taylor, president and CEO of Cox Enterprises, will become president of the Board of the Combined Company. Another Cox executive will join the Board, and the Cox family will have the right to retain two members of the Board.
Disclosure: Comcast is the parent company of CNBC.
