10:39 AM EDT, 05/16/2025 (MT Newswires) -- Charter Communications ( CHTR ) and Cox Communications agreed to combine in a deal that would better position the combined entity to compete with broadband and streaming companies.

The merger values privately held Cox at $34.5 billion in enterprise valuation, comprised of $21.9 billion of equity and $12.6 billion of debt, the companies said in a joint statement. Shares of Charter advanced 2.8% in Friday trading.

Charter will acquire Cox's commercial fiber and managed IT and cloud businesses, while Cox Enterprises will contribute the residential cable business to Charter Holdings.

The combined company will be better positioned to "aggressively" compete in a marketplace that includes national broadband companies, regional mobile competitors and global video distribution providers, according to the statement.

"This combination will augment our ability to innovate and provide high-quality, competitively priced products," Charter Chief Executive Chris Winfrey said. "We will continue to deliver high-value products that save American families money, and we'll onshore jobs from overseas to create new, good-paying careers for US employees."

Under the terms of the deal, Cox Enterprises will receive $4 billion in cash, and $6 billion in convertible preferred units and $11.9 billion worth of common units in Charter's existing partnership. Cox Enterprises is expected to own a roughly 23% stake in the combined company, pro forma for the Liberty Broadband ( LBRDA ) deal.

The Charter-Cox deal, which requires approval from Charter's shareholders and clearance from regulators, is expected to complete simultaneously with Charter's proposed acquisition of Liberty announced in November. That transaction received shareholder approval in February and has a targeted closing date of June 30, 2027.

In a separate statement, Liberty Broadband ( LBRDA ) said it agreed to accelerate the closing of its acquisition by Charter to match the timing of the Cox deal. The company also agreed to support the transaction between Charter and Cox.

Within a year of closing, the combined company will change its name to Cox Communications, while Charter's Spectrum will become the consumer-facing brand across the communities Cox serves.

The combined company will offer Cox customers a choice to pay less for new Spectrum bundled services or to keep their current plans. The deal is expected to generate $500 million in annual cost savings within three years of closing.

Charter's Winfrey will lead the merged company, which will remain headquartered in Connecticut with a significant presence in Georgia, while Cox Enterprises CEO Alex Taylor will become chairman. Liberty Broadband ( LBRDA ) will no longer be a direct shareholder in Charter, with its three current board nominees to resign upon the deal's completion.

Price: 424.50, Change: +4.93, Percent Change: +1.18