NEW YORK, May 16 (Xinhua) -- Charter Communications has offered to acquire Cox Communications, a 34.5-billion-U.S.-dollar merger that would combine two of the top three cable companies in the United States.
Cox is the third largest cable television company in the country, with more than 6.5 million digital cable, internet, telephone, and home security customers. It has a strong foothold in states spanning from California to Virginia. Charter Communications, known more widely as Spectrum, has more than 32 million customers in 41 states.
"The cable industry has been under assault for years from streaming services like Disney, Netflix, Amazon and HBO Max, as well as internet plans offered by mobile phone companies," reported the Los Angeles Times on Friday about the move.
So-called "cord cutting" has cost the industry millions of customers and left them searching for ways to successfully compete, noted the report.
Charter said on Friday that it will acquire Cox Communications' commercial fiber and managed IT and cloud businesses. Cox Enterprises will contribute Cox Communications' residential cable business to Charter Holdings, an existing subsidiary partnership of Charter.
Cox Enterprises will own about 23 percent of the combined company's outstanding shares. The transaction, which needs approval from Charter shareholders as well as regulators, includes 12.6 billion dollars in debt. ■
