FCC approves the merger of cable giants Cox and Charter
The Federal Communications Commission has given the go ahead for two of the US' biggest cable providers, Charter Communications and Cox Communications, to merge. Charter announced its intention to acquire Cox for $34.5 billion in May 2025, with specific plans to inherit Cox's managed IT, commercial fiber and cloud businesses, while folding the company's residential cable service into a subsidiary.
“By approving this deal, the FCC ensures big wins for Americans," FCC Chairman Brendan Carr said in a statement. "This deal means that jobs are coming back to America that had been shipped overseas. It means that modern, high-speed networks will get built out in more communities across rural America. And it means that customers will get access to lower priced plans. On top of this, the deal enshrines protections against DEI discrimination."
The FCC claims that Charter plans to invest "billions" to upgrade its network following the closure of the deal, leading to "faster broadband and lower prices." The company's "Rural Construction Initiative" will also extend those improvements to rural states lacking in consistent internet service, a project the FCC was heavily invested in during the Biden administration, but has been pulling back from since President Donald Trump appointed Carr. The FCC also claims Charter will onshore jobs currently handled off-shore by Cox employees and commit to "new safeguards to protect against DEI discrimination," which essentially amounts to hiring, recruiting and promoting employees based on "skills, qualifications, and experience."
While Carr's FCC paints a rosy picture of Charter's acquisition, history has provided multiple examples of mergers having the opposite effect on jobs and pricing. For example, redundancies created when T-Mobile merged with Sprint in 2020 led to a wave of layoffs at the carrier. And funnily enough in 2018, not long after Charter's merger with Time Warner Cable was approved by the FCC, the company raised prices on its
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