• Charter Communications and Cox Communications announce a $34.5 billion merger.
• The deal will create one of the largest cable providers in the U.S., combining over 38 million customers.
• The merger aims to strengthen their position against streaming services and enhance service offerings.
• Cox will hold approximately 23% of the merged entity's shares.
• The transaction includes $12.6 billion in debt and requires shareholder and regulatory approval.

Charter Communications has agreed to merge with Cox Communications in a substantial deal valued at $34.5 billion, consolidating two of the top three cable providers in the U.S. Charter, operating under the Spectrum brand, has over 32 million customers, while Cox, the third-largest cable company, services more than 6.5 million households across various states, including California and Virginia, according to Reuters, Los Angeles Times, and CBS News.

The merger comes as the cable industry faces significant challenges from streaming services that have led to widespread "cord-cutting." This trend has caused many cable providers to lose millions of subscribers, prompting them to look for ways to enhance their competitive edge. Charter's strategy includes acquiring Cox's commercial fiber operations and managed IT services, while maintaining both companies' consumer services through a combined entity, according to India Times and Reuters.

Once the merger is finalized, anticipated to close alongside Charter's merger with Liberty Broadband, the combined company will rebrand itself as Cox Communications. Charter CEO Chris Winfrey will lead the new entity, which will also retain a presence in both Stamford, Connecticut, and Atlanta, Georgia. The corporate structure allows Cox to keep a minority stake, holding about 23% of outstanding shares, as reported by Los Angeles Times and CBS News.

However, the merger still requires regulatory approval, presenting a substantial test of antitrust scrutiny in a market increasingly dominated by streaming competitors. The combined entity aims to innovate in broadband and mobile services, responding to the industry's shifting landscape where traditional pay-TV subscriptions are declining rapidly, according to India Times and CBS News.