Charter Communications’ $34.5 billion merger with Cox officially closed on Thursday morning.
Additionally, Charter has completed an acquisition of Liberty Broadband in an all-stock transaction. The Spectrum brand and pricing will now come to Cox markets in mid-September, with the combined entity taking the Cox name within a year. The company will also remain headquartered in Stamford, Connecticut, and will maintain a significant presence on Cox’s Atlanta campus.
The move comes after the deal, which will create the nation’s largest Internet and video provider by subscriber base, received approval from the FCC and regulators across 45 states where the companies do business.
“The addition of Cox to the Spectrum footprint is one that can be celebrated by customers, employees and investors alike,” Charter president/CEO Chris Winfrey said in a statement. “Together, we will bring the best products, at the best price, coupled with the highest level of customer service to more customers across our expanded 45-state Spectrum footprint. And Cox employees will soon have access to all the programs and benefits that have made Charter an employer of choice where its 100% U.S.-based employees can build long-term careers.”
“When Liberty first invested in Charter more than a decade ago, we saw an opportunity to build scale behind a great management team and operating model,” Liberty chairman John Malone added. “The combination of Charter and Cox creates a stronger, more competitive company to further invest and innovate, while giving Liberty Broadband shareholders a direct interest in its future. I have tremendous respect for the Cox family and its long tradition of entrepreneurial leadership and responsible stewardship, and I look forward to seeing what Chris, Alex and their teams accomplish together.”
In order to clear the deal with the FCC, Charter committed to onshore all of the job functions currently handled off-shore by Cox within 18 months, matching its own longstanding commitment to a 100% U.S.-based customer sales and service employee workforce.
It has also committed to extending its industry-leading jobs practices, including a $20 per hour minimum starting wage to Cox workers.
Additionally, Charter added new safeguards to protect against “DEI discrimination” and has reaffirmed the merged entity’s commitment to equal opportunity and nondiscrimination. Specifically, Charter committed to recruiting, hiring and promoting individuals based on skills, qualifications and experience.
“We look forward to welcoming Cox employees to the Spectrum team,” Charter said in another statement. “This transformative deal will benefit millions of consumers who will soon have access to greater value and opportunities to save, including our fully converged mobile-broadband bundle savings guarantee, combined with our industry-leading Customer Commitment and the 100% U.S.-based sales and service employees Spectrum is known for.”
In addition to its concessions to the FCC, Charter also reached a settlement with California’s Public Utilities Commission, the Public Advocates Office and the California Emerging Technology Fund (CETF).
The settlement includes a commitment to invest $30 million in digital inclusion initiatives, including broadband adoption, digital literacy training, community outreach and device access for underserved communities; at least $275 million to upgrade the company’s California network, completing symmetrical one-gigabit service capability across legacy service areas within three years; and $5 million in Community Development Financial Institutions to expand access to capital for underserved California small businesses.
The combined company also agreed to new affordable broadband offerings for low-income Californians, including multiple CaliforniaLifeLine service tiers and standalone broadband plans available for five years, as well as five years of free broadband and Wi-Fi service for 50 eligible “community anchor institutions,” such as schools, libraries and community centers.
Charter-Cox will also expand outreach and enrollment assistance to help eligible households access affordable broadband services, expand workforce development through the VetConnect program and strengthen supplier diversity commitments.
Other protections include automatic bill credits for qualifying service outages lasting two hours or longer, continued honoring of eligible residential “price for life” service agreements, elimination of equipment exchange fees when customers upgrade or downgrade qualifying residential cable television service or return rented equipment in-person, enhanced battery backup options, annual customer notices for residential wireline voice service and new reporting and accountability requirements to monitor compliance with CPUC-ordered conditions.
