Charter Closes $34.5 Billion Cox Deal and Liberty Merger, Expanding Spectrum to 45 States
Updated
Updated · Charter Communications · Aug 20
Charter Closes $34.5 Billion Cox Deal and Liberty Merger, Expanding Spectrum to 45 States
3 articles · Updated · Charter Communications · Aug 20
Summary
Charter said it has completed its transactions with Cox Communications and Liberty Broadband, creating a combined broadband, video and mobile operator serving more than 70 million homes and businesses across 45 states.
Mid-September is the next key milestone: Spectrum will roll out its pricing and product lineup across former Cox markets, while Cox internet customers who do not already use Cox Mobile get a free mobile line for one year starting now.
Cox Enterprises received about $15 billion in cash, preferred units and common-equivalent equity, and now owns roughly 26% of the combined company on a fully diluted basis; Charter also keeps about $12 billion of Cox debt and finance leases.
Liberty Broadband holders received 0.236 Charter shares per common share, while Charter retired 38.6 million shares and issued 33.9 million, cutting net shares outstanding by about 4.7 million.
Within a year, Charter plans to rename its parent company Cox Communications while keeping the Spectrum brand in market, with Alex Taylor becoming chairman and Charter remaining headquartered in Stamford.