By George Glover

Charter Communications is merging with Cox Communications in a deal likely to shake up the U.S. cable industry.

The two companies said ahead of the opening bell that they would combine in a deal valuing the privately held Cox at about $34.5 billion.

Shares in Charter, which operates the Spectrum pay TV and internet services, jumped 8% in premarket trading. Futures tracking the S&P 500 were up 0.3%.

If regulators approve the deal, it would create a vast new company with a presence across the country. Charter has about 31 million customers, and Cox has around 6.5 million.

Cable TV companies have bled customers in recent years, with millions of viewers opting to cut the cord and pivot to streaming services like Netflix. Charter has had some success in drumming up demand for its bundled streaming plan, which offers customers ad-supported versions of several different platforms.

Analysts had been expecting some cable merger activity this year, particularly after media mogul and influential Charter investor John Malone said at a Liberty Media investor day in November that it was time to allow a once-unthinkable combination between the industry's two biggest players, Charter and its biggest rival Comcast.

Shares in Comcast, which owns NBCUniversal as well as a broadband and cable business, were flat in early trading on Friday.

If the deal is approved, Charter CEO Chris Winfrey would be the new company's CEO, while Cox CEO Alex Taylor would be chairman of the board. The combined company would be called Cox Communications, and its consumer-facing product would operate under the Spectrum brand.

Write to George Glover at george.glover@dowjones.com

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May 16, 2025 08:44 ET (12:44 GMT)

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