Charter Communications has agreed to merge with Cox Communications in a $34.5 billion deal that will combine two of the top three cable companies in the U.S., affecting nearly 40 million customers in over 40 states.
The move comes as cable companies face increasing pressure from “cord-cutters” cancelling their TV service in favor of streaming services.
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. The combined company will retain the name of Atlanta-based Cox, and Charter’s Spectrum brand would become the consumer-facing brand. Company shareholders and federal regulators still have to approve the merger.
