By Robb M. Stewart

Charter Communications has reached a deal to buy rival Cox Communications for $21.9 billion, bringing together two of the biggest cable operators in the U.S.

The tie-up, one of the largest ever for the industry, values closely held Cox at roughly $34.5 billion, including debt and other obligations.

Charter and Cox said that by combining they will create a leader in mobile and broadband communications and video entertainment, while bringing back jobs from overseas at a time when the Trump administration is attacking global trade in an effort to strengthen the U.S. economy. The merger comes as media companies are struggling to wrestle viewers from streaming services.

Under the terms of the transaction, Charter will buy Cox Communications' commercial fiber and managed information technology and cloud businesses. Parent Cox Enterprises will contribute Cox Communications' residential cable business to Charter Holdings, an existing subsidiary partnership of Charter.

Family-owned Cox Enterprises will receive $4 billion in cash, $6 billion worth of convertible units in Charter's existing partnership that ultimately are exchangeable for Charter shares and about 33.6 million units of Charter's partnership with an implied value of $11.9 billion that will be exchangeable for shares.

When the deal is completed, Cox Enterprises will own about 23% of the combined company, while the combined entity will take on Cox's about $12 billion in outstanding debt.

The merger company plans to change its name to Cox Communications, with the Spectrum name becoming the consumer-facing brand in the communities Cox serves. The new company will remain based in Stamford, Conn., and maintain a presence at Cox's Atlanta base.

Charter President and Chief Executive Chris Winfrey will continue in his roles, while Cox Enterprises Chairman and CEO Alex Taylor will join the enlarged company's board as chairman.

The tie-up between Charter and Cox is set to be completed at the same time as Charter's earlier deal to buy Liberty Broadband. Liberty said it has agreed to vote in support of the Charter and Cox combination, and Liberty three nominees on Charter's board will resign at the closing of Charter's acquisition of Liberty.

Charter offers broadband connections and cable services to more than 57 million homes and businesses in 41 states through Spectrum. Cox is the largest privately held broadband company in the U.S., with a network that reaches more than 30 states.

Write to Robb M. Stewart at robb.stewart@wsj.com

(END) Dow Jones Newswires

May 16, 2025 07:46 ET (11:46 GMT)

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