Charter Communications has announced a merger agreement with Sandy Springs-based Cox Communications valued at $34.5 billion.
The major transaction will need approval from Charter shareholders as well as federal regulators, according to an Associated Press report.
Under the agreement, Charter, which is the second-largest cable operator in the U.S., will absorb Cox’s assets and operations. Cox is the third-largest provider and is the largest privately held broadband company in the country, serving about 6.5 million residential and commercial customers.
Following the merger, the combined company will maintain its headquarters in Stamford, CT, while keeping a presence in Metro Atlanta, according to the report.
Charter currently serves 57 million homes and businesses across 41 states, while Cox operates in 18 states.
Once the merger is finalized, the combined company will operate under the name Cox Communications, while Charter’s Spectrum brand will remain the public-facing name for its services, including cable, broadband, and mobile.
The merger comes amid shifting dynamics in the broadband sector, as cable providers face growing competition from wireless alternatives like 5G and fixed wireless internet. Traditional cable TV continues to lose ground, forcing companies to pivot toward mobile and broadband services to maintain customer loyalty.
The merger with Cox is expected to be finalized concurrently with Charter’s pending all-stock acquisition of Liberty Broadband, which shareholders approved earlier this year.
