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Miami Herald
17-05-2025
- Business
- Miami Herald
Cox Communications and Charter to combine in major cable deal
Cox Communications plans to merge with Charter Communications in a deal that, if approved by regulators, will combine two of the nation's largest cable companies. Cox Communications, based in Sandy Springs, Georgia, and owned by Cox Enterprises, is the third-largest cable operator in the nation. Charter, based in Stamford, Connecticut, is the second-largest. The combined company, to be called Cox Communications within a year of the closing of the deal, will be publicly traded and based in Connecticut. But it will retain significant operations at the Cox Enterprises campus in Sandy Springs. The complex transaction, which will require shareholder and regulatory approval and could take a year or more to close, values Cox Communications at about $34.5 billion, the companies said. The combined company would surpass Comcast in terms of cable customers. It will also offer its suite of consumer and business products under Charter's Spectrum brand. Those offerings include fiber internet, mobile and wired telephone service and streaming entertainment. Cox Enterprises will become the combined company's largest shareholder, controlling nearly a quarter of the company. 'Our family has always believed that investing for the long-term and staying committed to the best interests of our customers, employees and communities is the best recipe for success,' Alex Taylor, chairman and CEO of Cox Enterprises, said in a news release. 'In Charter, we've found the right partner at the right time and in the right position to take this commitment to a higher level than ever before, delivering an incredible outcome for our customers, employees, suppliers and the local communities we serve.' Taylor will join the board of the new company and become its chairman, and he will remain chairman and chief executive of Cox Enterprises. In an interview, Taylor said the new Cox Communications will retain a culture centered on community, customers and employees. He also said he sees the new Cox Communications being an entity that will continue to invest in Atlanta. The combined company will have more than 100,000 employees. Its network will span 46 states, covering nearly 70 million homes and businesses - and they intend to grow, Charter CEO Chris Winfrey said during a conference call with analysts and investors. The companies don't have any 'real overlapping footprint,' he said. The companies said together they will be bigger and better able to compete in an evolving marketplace that has seen consumers access television, other forms of video entertainment and the internet in different ways, increasingly wirelessly and on the go. Streaming services have changed the way many consumers watch video and TV, and wireless and satellite companies have expanded into internet service. Cable companies have responded by launching cellular networks. 'Cox and Charter have been innovators in connectivity and entertainment services - with decades of work and hundreds of billions of dollars invested to build, upgrade, and expand our complementary regional networks to provide high-quality internet, video, voice and mobile services,' Winfrey said in the release. Addressing the need for regulatory approval, Winfrey, who will be president and CEO of the combined company, told investors and analysts the deal is 'good' from a competition standpoint. He said he hopes approval could come by mid-next year but acknowledged it's 'hard to say.' The corporate marriage, he said, 'allows us to actually invest more into the footprint, to have better products, have better service, invest more in (artificial intelligence) and invest more in U.S.-based jobs.' 'Atlanta success story' Cox Enterprises is one of the nation's largest privately held companies. Cox Enterprises was founded in 1898 by former Ohio Gov. James M. Cox when he purchased the Dayton Daily News. Cox later purchased The Atlanta Journal and The Atlanta Constitution newspapers, building a media empire that would expand into radio and television. The company acquired its first cable franchise in 1962, making the Cox family the longest continuous operator in the sector and the largest privately held operator. In the 1960s, Cox Communications went public. But Cox Enterprises took back control and made it a privately held subsidiary in 1985. Following an acquisition, the cable company was public again during the 1990s and early 2000s until the family bought out shareholders. Today, Cox Communications' cable territory spans 19 states, and it operates broadband services in more than 30 states. In an interview, Taylor said with what was then about a $660,000 investment, Cox started its cable business, one that for many years was dwarfed by its newspaper business in terms of revenue and profit. Even by the 1980s, newspapers remained Cox Enterprises' largest profit center. Taylor, the great-grandson of the company's founder, has a shareholder letter from the 1960s that contains a photograph of family members learning about the power of cable and being told one day it would carry not only television but information, such as how to improve one's golf game, the ability to shop and for families to obtain the contents of a newspaper - essentially what would become the modern internet. Taylor credited his family for having the foresight to invest in technology that would connect the world and what would become the family-owned company's largest division. Taylor's uncle, predecessor and now Cox Enterprises chairman emeritus, Jim Kennedy, was the architect of much of that success. 'In the last 20 to 30 years, under the leadership of Jim Kennedy, it's grown into this amazing Atlanta success story,' Taylor said. Cox Enterprises is also a major player in the automotive sector, with holdings that include AutoTrader and Kelley Blue Book. In recent years, Cox Enterprises has diversified its holdings, selling its majority stakes in its television and radio stations and making acquisitions in clean energy, electric vehicles and the EV supply chain, health technology, sustainable agriculture and media. The company, for instance, is now the nation's largest operator of advanced greenhouses and a powerhouse in EV battery maintenance and recycling. Cox Enterprises will continue to own its Cox Automotive division, media holdings, including The Atlanta Journal-Constitution and Axios, and its emerging ventures in technology, agriculture and other sectors, the company said. Charter was founded in 1993 and, over the years, expanded through acquisitions. The company, in 2016, acquired Time Warner Cable and Bright House Networks to become the second-largest cable provider in the U.S. In 2024, Charter reported more than $55 billion in revenue and more than $5 billion in profit. The company reported 12.7 million video customers at the end of March and about 30 million internet subscribers. Charter also operates Spectrum News stations in the markets it serves and will expand the local news service to Cox Communications markets. In 2024, Cox Communications brought in about $13.1 billion in revenue, Charter's CFO, Jessica Fischer, told investors. Cox Enterprises will receive $4 billion in cash as part of the transaction, $6 billion in convertible preferred units that are exchangeable for Charter common stock and nearly $12 billion in common units that are exchangeable for Charter common stock. The combined company will assume $12 billion in outstanding Cox Communications debt. The Cox-Charter deal comes as Charter recently acquired Liberty Broadband in an all-stock transaction, which will result in Liberty shareholders retaining stakes in the future Cox Communications. In addition to appointing Taylor as chairman of the combined cable business, Cox Enterprises will have two other seats on the 13-seat board. Charter said the combined company will likely produce $500 million in cost savings and other synergies within three years of the deal closing, 'stemming from typical procurement and overhead savings.' In announcing the deal to its employees, Cox officials said it is too soon to know potential impacts on individual workers. In striking a deal with Charter, Taylor said it was important to find a partner willing to continue Cox's commitments to philanthropy and community service in all markets it serves, including Atlanta. As part of the deal, Charter will create a new Cox Communications foundation, endowing it with $50 million. It will also establish an employee relief fund to help workers of the new company who might encounter hardships such as natural disasters, similar to one created two decades ago at Cox Enterprises. 'We want the new Cox Communications, like the current Cox Communications, to be one that's very committed to employees and the community,' Taylor said. The deal at a glance Key points about the combination of Cox Communications and Charter Communications: Headquarters: Will be in Stamford, Connecticut, with major operations in Sandy Springs. $34.5 billion: The value of Cox Communications in the deal, including assumption of debt. $55.1 billion: Charter's annual revenue in 2024. $13.1 billion: Cox cable's annual revenue in 2024. More than 100,000: Employees of the combined companies. 46: The number of states served by the combined company. Copyright (C) 2025, Tribune Content Agency, LLC. Portions copyrighted by the respective providers.
Al Jazeera
16-05-2025
- Business
- Al Jazeera
Charter Communications to buy rival Cox for $21.9bn
Charter Communications has agreed to buy its rival Cox Communications for $21.9bn in a deal that would unite the two of the largest cable and broadband operators in the United States as they battle streaming giants and mobile carriers for customers. The deal, announced on Friday, comes more than a decade after the companies reportedly abandoned an earlier merger attempt. Since then, pressure has intensified on cable companies, with wireless carriers attracting broadband customers with aggressive plans, while millions ditch traditional pay-TV for streaming. The companies said they expect to realise $500m in cost savings within three years of the deal's expected close in mid-2026. Under the cash-and-stock deal, Charter will take on about $12.6bn of Cox's net debt and other obligations, giving the transaction an enterprise value of $34.5bn. Cox Enterprises, the family-owned parent of Cox Communications, will own about 23 percent of the merged entity, with its CEO Alex Taylor serving as chairman. The combined firm will rebrand as Cox Communications within a year of the deal's close, with Charter's Spectrum being the consumer-facing brand. It will keep its headquarters in Stamford, Connecticut, while maintaining a big presence at Cox's campus in Atlanta, Georgia. The merger with Cox – one of the biggest deals globally this year – will aid Charter's push to bundle broadband and mobile services, helping it fend off competition from carriers. Analysts have said Charter's strategy of combining internet, TV and mobile services into a single, customizable package has shown merit, but it needs scale as cable firms rely on leasing network access from major carriers to offer mobile plans. 'This combination will augment our ability to innovate and provide high-quality, competitively priced products,' said Charter CEO Chris Winfrey, who will head the combined company. The Spectrum-owner has a market value of nearly $60bn. On Wall Street, Charter's stock rose on the news of the potential merger. As of 12:00pm ET (16:00 GMT) the stock is up 1.66 percent since the market opened. The merger will be among the first major tests of M&A regulation under the administration of US President Donald Trump, as it would create the largest US cable TV and broadband provider with about 38 million subscribers, surpassing current market leader Comcast. It will likely be reviewed by the US Department of Justice's antitrust division. Assistant Attorney General Gail Slater, who leads the division, has made it clear she intends to focus on mergers that decrease competition in ways that harm consumers or workers. EMarketer analyst Ross Benes said the merged entity would be the largest US pay-TV operator, but the 'ISP (internet service provider) side of the business is more consequential' for consumers, potentially positioning it as a regional monopoly. Winfrey echoed Trump's 'America First' employment priorities and said the deal would bring Cox's customer service jobs back from overseas, but he did not specify how many. Charter's customer service teams are already based entirely in the US. 'This is the first big corporate move (in the same sector) to happen under the new Trump administration so … will set the tone for other potential moves or not,' said PP Foresight analyst Paolo Pescatore. Charter and Cox had also discussed a merger in 2013 before shelving the plan, according to media reports. But speculation had risen again in recent months after cable billionaire John Malone said in November Charter should be allowed to merge with rivals such as Cox, shortly after Charter agreed to buy his Liberty Broadband. Liberty Broadband shareholders will receive direct interest in Charter under the terms of the deal with Cox.
New York Post
16-05-2025
- Business
- New York Post
Charter Communications buying cable rival Cox for $21.9B
Charter Communications said Friday it would buy privately held rival Cox Communications for $21.9 billion, uniting two of the largest US cable and broadband operators as they battle streaming giants and mobile carriers for customers. American media companies are considering options for their once lucrative cable TV businesses that are now in decline as millions of consumers pivot to streamers such as Netflix. The merger — one of the biggest deals of the year globally — will help Charter better bundle broadband and mobile services, as it tries to keep customers from switching to wireless providers such as T-Mobile that have their own internet plans. Advertisement 3 Charter Communications is buying privately held rival Cox Communications for $21.9 billion. AP Charter's strategy of combining internet, TV and mobile services into a single, customizable package helped it beat quarterly revenue estimates last month. Analysts say the strategy's appeal is obvious, but it needs scale as cable firms rely on leasing network access from major carriers to offer mobile plans. 'This combination will augment our ability to innovate and provide high-quality, competitively priced products,' said Charter CEO Chris Winfrey, who will head the combined company. Advertisement Charter shares were up nearly 2%. As part of the cash-and-stock deal, Charter will also assume Cox's about $12.6 billion of net debt and other obligations. That gives the deal an enterprise value of about $34.5 billion. Advertisement Cox Enterprises will own about 23% of the merged entity, with its CEO Alex Taylor serving as chairman. The combined firm will rebrand as Cox Communications within a year of the deal's close, with Charter's Spectrum becoming the consumer-facing brand in Cox markets. 3 Cox Enterprises will own about 23% of the merged entity AP Cox Communications is the largest division of Cox Enterprises — a family-controlled firm founded in 1898 by former Ohio governor James Cox, with interests in cable, automotive and media including Axios. Advertisement Charter and Cox had also discussed a merger in 2013 before shelving the plan. But speculation had risen again in recent months after cable billionaire John Malone said in November Charter should be allowed to merge with rivals such as Cox, shortly after Charter agreed to buy his Liberty Broadband. 3 'This combination will augment our ability to innovate and provide high-quality, competitively priced products,' said Charter CEO Chris Winfrey, who will head the combined company. Charter Communications Without specifying a date, Charter said its buyout of Cox was expected to close alongside the previously announced Liberty Broadband deal. Liberty Broadband shareholders will receive direct interest in Charter under the terms of the deal with Cox.
Time of India
16-05-2025
- Business
- Time of India
Charter to buy Cox for $21.9 billion in mega cable deal
Charter Communications said on Friday it would buy privately held rival Cox Communications for $21.9 billion, uniting two of the largest U.S. cable and broadband operators as they battle streaming giants and mobile carriers for customers. American media companies are considering options for their once lucrative cable TV businesses that are now in decline as millions of consumers pivot to streamers such as Netflix. The merger - one of the biggest deals of the year globally - will help Charter better bundle broadband and mobile services, as it tries to keep customers from switching to wireless providers such as T-Mobile that have their own internet plans. Charter's strategy of combining internet, TV and mobile services into a single, customizable package helped it beat quarterly revenue estimates last month. Analysts say the strategy's appeal is obvious, but it needs scale as cable firms rely on leasing network access from major carriers to offer mobile plans. "This combination will augment our ability to innovate and provide high-quality, competitively priced products," said Charter CEO Chris Winfrey, who will head the combined company. Charter shares were up 9% in premarket trading. As part of the cash-and-stock deal, Charter will also assume Cox's about $12.6 billion of net debt and other obligations. That gives the deal an enterprise value of about $34.5 billion. Cox Enterprises will own about 23% of the merged entity, with its CEO Alex Taylor serving as chairman. The combined firm will rebrand as Cox Communications within a year of the deal's close, with Charter's Spectrum becoming the consumer-facing brand in Cox markets. Cox Communications is the largest division of Cox Enterprises - a family-controlled firm founded in 1898 by former Ohio governor James Cox, with interests in cable, automotive and media including Axios. Charter and Cox had also discussed a merger in 2013 before shelving the plan. But speculation had risen again in recent months after cable billionaire John Malone said in November Charter should be allowed to merge with rivals such as Cox, shortly after Charter agreed to buy his Liberty Broadband . Without specifying a date, Charter said its buyout of Cox was expected to close alongside the previously announced Liberty Broadband deal. Liberty Broadband shareholders will receive direct interest in Charter under the terms of the deal with Cox.
BreakingNews.ie
16-05-2025
- Business
- BreakingNews.ie
US cable giants Charter and Cox pursue 34.5 billion dollar merger
Charter Communications has offered to acquire Cox Communications, a 34.5 billion dollar (£26.3 billion) merger that would combine two of the largest cable companies in the US. 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. Advertisement Charter Communications, known to many as Spectrum, has more than 32 million customers in 41 US states. Charter said on Friday that it will acquire Cox Communications' commercial fibre 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. Advertisement The transaction, which needs approval from Charter shareholders as well as regulators, includes 12.6 billion (£9.4 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 chief executive Chris Winfrey will become president and chief executive of the combined company. Advertisement Cox chief executive and chairman Alex Taylor will serve as chairman. Shares of Charter rose 6% before the market open.
