After feeling the heat from wireless providers and streaming services, traditional cable companies Charter and Cox are seemingly fighting back with the announcement of a merger. Charter, more commonly known as Spectrum, will buy Cox for about $34.5 billion, one of the largest deals in the industry in the past year. It'll also become a much bigger broadband service provider.
Charter is the second-largest publicly traded cable company behind Comcast. With more than 6.5 million customers, Cox is the third-largest cable company. Combined, they would become the largest cable TV and broadband provider in the US.
According to Joe Supan, CNET senior broadband reporter, the deal between Charter and Cox completely upends the internet landscape. It's no secret that traditional cable companies have had to fight for customer interest against streaming services for years. Recently, major TV outlet ESPN announced details about a standalone streaming service. Fox and Warner Bros. also unveiled similar plans.
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"Both Spectrum and Cox have been losing subscribers steadily over the past year," Supan said. "A combination of cord-cutting, expanded 5G home internet options and the end of the Affordable Connectivity Program have all hit these cable providers hard."
The combined companies would be called Cox Communications, with the name change to occur within a year of the deal closing. The merger is still subject to regulatory and Charter shareholder approvals before it's final, however.
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Cox customers will see a brand change
According to the release, Charter will buy Cox Communications' commercial fiber and managed IT and cloud businesses. Cox Enterprises will contribute Cox Communications' residential cable business to Charter Holdings, which is an existing subsidiary partnership of Charter.
Spectrum will be the consumer-facing brand under the new company name Cox Communications. So, if your current provider is Cox, you should expect to see a logo change on the vans that come to your house if the deal closes.
Beyond that, we're not sure what changes are coming, if any. "Ultimately, I don't think this will have much of an impact on customers," Supan said. "If you already have Cox or Spectrum, the most significant change you'll notice will probably just be the name on your internet bill."
We don't know any more details about the plans for how the merger will impact pricing.
A representative from Charter Communications did not immediately respond to a request for comment.