KEY TAKEAWAYS
- Charter Communications reportedly is in advanced discussions to merge with privately held rival Cox Communications in a deal that would combine two of the U.S.’s largest cable providers.
- Citing people familiar with the matter, Bloomberg reported that the firms are discussing a cash-and-stock deal that would value Cox Communications at above $30 billion including debt, and that “the Cox family would be the largest shareholder in the combined company with a stake of about 20%.”
- Charter shares are little changed in premarket trading but are up 22% this year entering Friday.
Charter Communications (CHTR) reportedly is in advanced discussions to merge with privately held rival Cox Communications in a deal that would combine two of the U.S.’s largest cable providers.
Citing people familiar with the matter, Bloomberg reported that the firms are discussing a cash-and-stock deal that would value Cox Communications at above $30 billion including debt, and that “the Cox family would be the largest shareholder in the combined company with a stake of about 20%.” The family would also hold board seats, the report said, noting “a deal could be announced within days.”
Neither Charter, the parent of internet, mobile phone, and pay-TV provider Spectrum, nor Cox immediately responded to a request for comment.
Cable companies are looking for ways forward as they grapple with threats from streaming firms such as Netflix (NFLX) in the TV business and phone companies like AT&T (T) that are offering broadband deals to customers.
Charter shares are little changed in premarket trading but are up 22% this year entering Friday.
:max_bytes(150000):strip_icc()/GettyImages-2211161382-3559d6f2aa514e0b9f6782dd9146fb4d.jpg?w=1200&resize=1200,0&ssl=1&description=Charter+Communications+in+Talks+to+Merge+With+Fellow+Cable+Firm+Cox%2C+Report+Says){kind=link}