U.S. cable giants Charter Communications (CHTR) and Cox Communications have agreed to a merger valued at $34.5 billion U.S.
The deal will effectively see Charter Communications acquire Cox for $34.5 billion U.S. comprised of $21.9 billion U.S. of equity and $12.6 billion U.S. of net debt and other obligations.
Charter Communications is the second largest publicly traded cable company in America behind Comcast (CMCSA). Privately held Cox Communications is also a leading cable provider.
Once the deal is completed, Cox Enterprises will own roughly 23% of the combined company’s fully diluted shares, according to a news release.
The transaction will see the combined company change its name to Cox Communications within a year after the deal closes.
Charter’s Spectrum, the brand on its cable, broadband, and mobile services, will become the consumer-facing brand going forward.
The combined company will be run out of Charter’s headquarters in Stamford, Connecticut, although it will keep a significant presence in Cox’s home base of Atlanta, Georgia.
Charter Chief Executive Officer (CEO) Chris Winfrey will remain at the helm of the merged company.
Alex Taylor, CEO of Cox Enterprises, will become chairman of the newly formed company’s board of directors.
The merger with Cox comes months after Charter announced it would acquire Liberty Broadband (LBRDK) in an all-stock deal.
In February of this year, Charter and Liberty Broadband stockholders approved that deal.
The stock of Charter Communications has risen 20% this year to trade at $419.57 U.S. a share.