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Charter Communications, already the No. 1 cable operator in the U.S., closed its acquisition of Cox Communications, creating a cable giant with operations in 45 states serving roughly 37 million customers.
The closing
of the deal, valued at $34.5 billion, comes after the companies received final regulatory approvals
Within a year, the merged company will change its parent company name to Cox Communications. But it will operate its services as Spectrum (the Charter moniker) across all markets. The company will remain headquartered in Stamford, Conn., while keeping a “significant presence” in the Atlanta area (where Cox was based).
Charter said that, to “welcome its new customers,” the company is offering one free year of mobile service to Cox internet customers who don’t already subscribe to Cox Mobile. In mid-September, Spectrum plans to launch “its entire suite of products to all consumers” in former Cox markets.
With the deal, John Malone’s Liberty Broadband ceased to be a direct shareholder in Charter and no longer designates directors for election to the Charter board. Malone, the “cable cowboy” who has engineered many of the biggest deals in the sector over the years, first invested in Charter in 2013.
“When Liberty first invested in Charter more than a decade ago, we saw an opportunity to build scale behind a great management team and operating model,” Malone said in a statement. “The combination of Charter and Cox creates a stronger, more competitive company to further invest and innovate, while giving Liberty Broadband shareholders a direct interest in its future.”
Charter also touted the leading broadband and video company in the nation and the fastest growing mobile provider in its footprint, with seamless connectivity and video entertainment, and high-quality customer service delivering powerful benefits for customers, local communities, employees and shareholders.
“The addition of Cox to the Spectrum footprint is one that can be celebrated by customers, employees and investors alike,” said Chris Winfrey (pictured above), Charter president and CEO, in a statement. “Together, we will bring the best products, at the best price, coupled with the highest level of customer service to more customers across our expanded 45-state Spectrum footprint. And Cox employees will soon have access to all the programs and benefits that have made Charter an employer of choice where its 100% U.S.-based employees can build long-term careers.”
Alex Taylor, previously chairman and CEO of Cox Enterprises, has been appointed chairman of the newly merged company. Eric Zinterhofer (formerly Charter’s chairman) has been named the lead independent director of the board. Winfrey will continue in his current role as president and CEO and board member. In addition to Taylor, Cox Enterprises has appointed Dallas Clement and Mark Greatrex to Charter’s 13-member board.
Advance/Newhouse, which, like Cox, contributed its operations to Charter’s partnership in 2016, will retain its two board seats held by Steve Miron and Michael Newhouse.
