Charter has agreed to a $34.5 billion deal to buy COX, combining two of the largest cable companies in the U.S. with a major footprint from the New York area to Atlanta.
The deal is one of the largest in the industry, as cable operators are increasingly restricted as viewers cut wires and choose streaming services.
The transaction is worth $21.9 billion in equity and gives the business $34.5 billion in corporate value, including debt, according to a statement Friday.
The deal will bring work back to the U.S., a tacit move aimed at winning the support of U.S. President Donald Trump, as the deal is likely to face antitrust challenges.
"We will work from overseas and create new, highly paid careers for American employees," the statement said.
Cox is a 127-year-old family-run media dynasty based in Atlanta, whose name will survive through a merger. Charter and Cox plan to rename the merged Cox Communications within one year of the merger plan.
The company said Friday's deal only included communication assets from the Cox family, meaning they would retain media properties such as Axios and Atlanta Journal Construction newspapers.
As part of the deal, Cox shareholders will receive $11.9 billion in equity, $6 billion in cash in the form of convertible notes. After the transaction is concluded, Cox shareholders will own approximately 23% of the merged company.
Charter shares fell 2% in the former market in New York.
The planned portfolio is the latest move by billionaire cable investor John Malone to consolidate the industry, struggling with competition for streaming services and the high debt accumulation needed to fund infrastructure investments.
Malone, known as the "wired cowboy", recently announced a plan to combine the charter with free broadband, the largest investor in broadband operator Spectrum. Cox's acquisition will end with Charter's deal to buy Liberty, which Liberty agrees to vote for the merger.
Charter provides cable and broadband services to 57 million homes in 41 U.S. states and has a network infrastructure that can reach more than 30 states and 12MN homes and businesses.
The company said the deal will generate $500 million in savings per year over three years, which will help manage the $1.2 billion debt heap that plans to inherit from Cox.
Citigroup and Liontree advised on the financial terms of the deal, while Wachtell served as legal counsel. Cox was suggested by Allen & Co along with BDT&MSD, Evercore and Wells Fargo and received legal advice from Latham & Watkins.