Two of the nation's largest cable companies have announced their plans to merge, a move that comes as consumers continue to move towards digital streaming platforms.
Charter Communications, which operates using the Spectrum branding, will combine with its rival, Cox Communications, the companies announced on Friday.
During a call with investors announcing the merger, Charter CEO Chris Winfrey said the deal was "good for America" and will "return jobs from overseas and create new, good paying customer service and sales careers."
Combining also helps both companies compete with wireless providers — like AT&T and T-Mobile — that are offering streaming package deals along with their plans, and in doing so, potentially snatching customers away from the cable companies, CNN reports.
Charter had 30 million broadband customers at the end of its first quarter, which represents a decline of 60,000 from the prior period last year. It also had approximately 12.7 million cable TV customers and lost 181,000 during the quarter, CNBC reports.
During Friday's investors call, Charter's CFO, Jessica Fischer, also provided information about Cox's customer base. According to Fischer, the company has 6.3 million customers, including 5.9 million signed up for internet. In 2024, the company generated $13.1 billion in revenue, she said.
“This combination will augment our ability to innovate and provide high-quality, competitively priced products, delivered with outstanding customer service, to millions of homes and businesses,” Winfrey said in a statement.
After the news was announced, Charter's stock jumped more than 6 percent. The stock is one of the few cable companies to perform well this year; its price has increased by approximately 22 percent since January.
Under the merger, the name of the combined companies will be Cox Communications, but the customer-facing name will remain Spectrum.
This isn't the only merger Charter has undertaken since the start of the year; Charter and Liberty Broadband announced a merger a few months ago, and in February, the companies' stockholders approved the deal.
The merger with Cox is expected to close at the same time as the Liberty Broadband merger, the companies said on Friday.
Winfrey said on Friday that the closure "could be in the next year, mid-next year."
"But of course, we'll follow the lead of regulators and work with them productively," he added.
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