Charter Communications has closed its $34.5 billion merger and acquisition with Cox Communications, in a deal that creates the largest US cable operator in the country.

The deal has finally closed following approval from California last week, as Charter also closed its all-stock acquisition of Liberty Broadband Corporation.

Charter's merger with Cox was first announced in May of last year, when the two cable rivals confirmed a definitive agreement had been reached to combine their two businesses.

Approval from the California Public Utilities Commission (CPUC) last week followed that of the Federal Communications Commission (FCC), which OK'd the merger in March.

Combined, the new company will offer cable services to 45 US states and close to 38 million customers, while the company's network passes around 70 million locations.

“The addition of Cox to the Spectrum footprint is one that can be celebrated by customers, employees and investors alike,” said Chris Winfrey, president and CEO, Charter. “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."

Combining cable operations

As part of the merger, Charter will acquire Cox’s residential cable, commercial fiber, and managed IT and cloud businesses.

The merger will see the combined company use the Cox Communications name, while the consumer brand will remain Spectrum.

Charter will now indirectly control Cox’s residential broadband, video, mobile, and voice businesses, plus its advertising and enterprise businesses and its Segra, UPN, and RapidScale businesses.

As part of the terms of the deal, Cox has received approximately 33.6 million common units in Charter’s existing partnership, valued at roughly $5bn. Cox has also received $6bn in convertible preferred units carrying a 6.875 percent coupon, which are convertible into 12.6 million common units, and approximately $4bn in cash.

In total, Charter has issued just over 46 million Charter shares to a subsidiary of Cox Enterprises. Following the closing of the deal, Cox Enterprises and its subsidiaries now own approximately 26 percent of the combined entity’s fully diluted shares outstanding.

Founded by the newspaper magnate and politician James M. Cox in the late 1800s and originally in the newspaper business, US conglomerate Cox Enterprises entered the radio industry before moving into TV and broadcasting in the 1940s.

It then entered the cable television industry in the early 1960s and eventually moved into telecoms, when Cox acquired its first cable television franchise in 1962.

The merged entity will retain its headquarters in Stamford, Connecticut, plus Cox’s Atlanta, Georgia, campus.

"For generations, my family has believed in building businesses that matter and stand the test of time. The broadband industry has shaped how people live, work and connect with one another, and we believe deeply in its future. I look forward to partnering with Chris and the board to build on a proud legacy and create long-term value for our shareholders, customers, employees and the communities we serve," said Alex Taylor, chairman and CEO of Cox Enterprises and chairman of Charter’s board of directors.

Charter confirmed that it will move to extend Charter's pricing and packaging to the Cox footprint by next month, while the company said it's offering a free year of mobile service to Cox Internet customers who don’t already subscribe to Cox Mobile.

Charter closes Liberty Broadband deal

Indeed, it wasn't just the Cox acquisition that was finalized yesterday (August 20). Charter also completed its deal to acquire Liberty Broadband.

That deal was first announced back in November 2024, when Charter struck an agreement to acquire the company, which is controlled by American businessman John Malone.

Malone has owned a 26 percent stake in Charter. The deal doesn't include Alaskan cable operator GCI, which was spun off by Liberty Broadband last year.

As part of the agreement, each holder of Liberty Broadband common stock received 0.236 of a Charter share. This resulted in the retirement of approximately 38.6 million Charter shares previously owned by Liberty Broadband, with the issuance of about 33.9 million new shares.

“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,” said 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."