STAMFORD, Conn.—After getting final regulatory approvals last week, Charter Communications has completed its previously announced $34.5 billion transaction with Cox Communications (Cox) and the acquisition of Liberty Broadband Corporation.
The combined company will be by far the largest pay TV and broadband provider in the U.S., serving more than 37 million video, broadband, phone and mobile customers in 45 states.
The two merged cable operators plan to change the company’s name to Cox Communications next year but will operate under Charter’s consumer facing Spectrum brand.
The operator also plans to launch the Spectrum brand, pricing and packaging in all Cox markets.
Also as part of the deal, John Malone’s Liberty Broadband will no longer be a direct shareholder and will no longer designate board members, ending the direct influence of one of the most important pioneers and entrepreneurs in the history of cable TV.
“The addition of Cox to the Spectrum footprint is one that can be celebrated by customers, employees and investors alike,” said Chris Winfrey, Charter president and CEO. “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.
The deal creating a much larger operation is also likely to provide new impetus to consolidation among broadcasters who will be looking for ways to strengthen their hand in retransmission consent negotiations with pay TV providers.
In announcing the closing, Winfrey also touched on the issue of consolidation and increased competition cable operators face from 5G providers, noting that, “the market has changed considerably over the past decade, and regional providers like Spectrum are competing with national and even global connectivity and entertainment companies. Today, with expanded scale, we are better positioned to compete and continue investment in our products and service, tools and platforms, and to further the capability and reach of our Spectrum Fiber Broadband Network.”
“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,” added Dr. John C. Malone, chairman of Liberty Broadband. “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. I have tremendous respect for the Cox family and its long tradition of entrepreneurial leadership and responsible stewardship, and I look forward to seeing what Chris, Alex and their teams accomplish together.”
More information on the shareholding changes, new products, the combined board and other issues is available here.
