Charter and Cox to combine businesses in $34.5 billion megamerger

Charter and Cox have announced plans to merge in a $34.5 billion deal that will create a cable and internet behemoth. The two telecom companies say the merger will allow them to “aggressively compete” against larger broadband companies and mobile providers that have rolled out internet plans of their own.

Charter, which currently has 31.5 million customers, and Cox, which has 6.5 million, both face an increasing threat from streaming services like Netflix. Sports-focused streaming packages like those offered by Comcast, DirecTV, Fox, and soon, ESPN, also let viewers get their sports fix without a cable subscription.

The combined company will change its name to Cox within a year after the deal closes, while Spectrum will become the name of Cox’s consumer-facing brand. As part of the deal, Cox customers will get Charter’s “simple and transparent pricing and packaging structures” with no annual contracts, as well as credits for outages lasting longer than two hours. The companies will continue to offer TV, internet, and mobile services.

Cox and Charter don’t say when they expect the deal to close, but it will require approval from Federal Communications chair Brendan Carr, who has suggested that his agency won’t approve mergers if the companies have policies related to diversity, equity, and inclusivity (DEI).

“This combination will augment our ability to innovate and provide high-quality, competitively priced products, delivered with outstanding customer service, to millions of homes and businesses,” Charter CEO Chris Winfrey said in the press release. “We will continue to deliver high-value products that save American families money, and we’ll onshore jobs from overseas to create new, good-paying careers for U.S. employees.”