Charter Communications has announced a major acquisition of Cox Communications for $21.9 billion, uniting two leading players in the US cable and broadband market amidst rising competition from streaming services and mobile carriers. This merger is poised to create a more robust offering by integrating internet, TV, and mobile services. By bundling these services effectively, Charter aims to deter customer churn towards rival providers. Charter will assume Cox's debt, valuing the deal around $34.5 billion. Following the merger, the companies will rebrand in the Cox markets, marking a significant industry shift.
This combination will augment our ability to innovate and provide high-quality, competitively priced products,â said Charter CEO Chris Winfrey, who will head the combined company.
Charter's strategy of combining internet, TV and mobile services into a single, customizable package helped it beat quarterly revenue estimates last month. Analysts say the strategy's appeal is obvious, but it needs scale.
Cox Enterprises will own about 23% of the merged entity, with its CEO Alex Taylor serving as chairman. The combined firm will rebrand as Cox Communications within a year of the deal's close.
The merger - one of the biggest deals of the year globally - will help Charter better bundle broadband and mobile services, as it tries to keep customers from switching to wireless providers.
Collection
[
|
...
]