Stay informed with free updates
Simply register in the Media Myft Digest: Delivered directly to its inbox.
Charter has agreed to an agreement of $ 34.5 billion to buy COX that would combine two of the largest cable companies in the US.
The transaction, one of the largest in the industry, comes at a time when cable television operators are under assembly pressure, since spectators are increasingly cutting the cable and opting for transmission services.
The agreement values the capital of COX at $ 21.9 billion and gives the business a business value, including debt, or $ 34.5 billion, according to a statement on Friday.
The colleagues said the agreement returns jobs to the United States, a tacit movement aimed at winning the support of the president of the United States, Donald Trump, since the transaction is likely to face antitrust challenges.
“We will be work on land from abroad to create new and well -paid careers for US employees,” the statement said.
Cox, a 127 -year -old familiar media dynasty based in Atlanta, will see its name survive through fusion. Charter and Cox plan to change the name of the combined company Cox Communications within a year after the planned end of the merger.
Friday’s agreement only includes communications assets of the Cox family, which means that they will retain media properties and the newspaper of the Constitution of Atlanta Journal, said the company.
As part of the agreement, Cox shareholders will receive $ 11.9 billion in capital, $ 6 billion in the form of a convertible note and $ 4 billion in cash. Cox shareholders will have about 23 percent of the combined company after the transaction is closed.
Charter shares fell 2 percent prior to the market in New York.
The planned combination is the last movement of the shareholder of the John Malone Charter, the billionaire cable investor, to consolidate the industry, which is fighting due to the increase in competition for transmission services and high debt batteries necessary to finance infrastructure investments.
Malone, known as the “cowboy cable,” recently announced a plan to combine the letter with Liberty Broadband, which is the largest investor in the broadband operator spectrum. The acquisition of COX will close in conjunction with the Charter agreement to buy Liberty, with Liberty agreeing to vote in favor of the combination.
Charter sacrifices cables and broadband services to 57 million housing in 41 US states, and has a network infrastructure that reaches more than 30 states and 12 million homes and businesses.
The company said the agreement creates annual savings of $ 500 million annually within three years, which will help manage the debt battery of $ 12 billion that plans to inherit COX.
Citigroup and Lionntree advised Charter on the financial terms of the agreement, while Wachtell acted as legal advisor. Allen & Co advised Cox along with BDT & MSD, Evercore and Wells Fargo, and received legal advice from Latham & Watkins.
]