Charter Communications and Cox Communications have announced plans to merge in a deal worth $34.5 billion.

In an announcement today (May 16), the two cable rivals confirmed a definitive agreement had been reached to combine their two businesses.

The proposed merger values Cox Communications at around $34.5 billion, made up of $21.9bn of equity and $12.6bn of net debt and other obligations.

It comes despite comments made by Charter president and CEO Chris Winfrey earlier this year that M&A is not essential to the company's long-term strategy.

“We’re honored that the Cox family has entrusted us with its impressive legacy and are excited by the opportunity to benefit from the terrific operating history and community leadership of Cox,” said Winfrey.

“This combination will augment our ability to innovate and provide high-quality, competitively priced products, delivered with outstanding customer service, to millions of homes and businesses."

Winfrey added that the merged entity will continue to create US jobs.

The combination of the two companies will create the biggest cable operator in the US with 69.5 million locations passed. This is made up of 57.2 million from Charter and 12.3 million from Cox.

It means the entity will have passed more locations than Comcast, which ended the first quarter of this year with just shy of 64 million.

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.

Cox acquired its first cable television franchise in 1962.

Cox Enterprises will own approximately 23 percent of the combined entity's full diluted shares based on Charter's share count as of March 31, 2025.

"Our family has always believed that investing for the long-term and staying committed to the best interests of our customers, employees, and communities is the best recipe for success,” said Alex Taylor, chairman and CEO of Cox Enterprises.

“In Charter, we’ve found the right partner at the right time and in the right position to take this commitment to a higher level than ever before, delivering an incredible outcome for our customers, employees, suppliers, and the local communities we serve.”

Within a year after the closing, the combined company will change its name to Cox Communications, while Spectrum will become the consumer-facing brand within the communities Cox serves.

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

Charter noted that it expects the merger to complete contemporaneously with the previously announced Liberty Broadband merger.

As part of the deal, Charter said that it would be better placed to invest in mobile, video, and advertising opportunities. The company also said that all employees will earn a starting wage of at least $20 per hour.