Spectrum owner Charter Communications stands close to finalizing a $34.5 billion acquisition of Cox Enterprises. This merger would create the largest internet and cable television company in the United States. The California Public Utilities Commission will vote next week on the merger’s approval, which would enhance the presence of Southern California’s leading provider, serving over 5 million customers.
Federal regulators approved the merger months ago, leaving state approval as the last hurdle. Cox, based in Atlanta, serves areas including Rancho Palos Verdes, Rolling Hills Estates, Las Vegas, Orange, and San Diego counties. These customers would soon switch to Spectrum services. Charter already serves Los Angeles, Riverside, San Bernardino, and Ventura counties with internet, phone, and cable TV packages.
The merger process began over a year ago, with plans to unify operations soon. However, disputes have arisen. Public interest groups argue that the current settlement does not ensure long-term affordable internet for low-income users. They also seek stronger commitments for communities affected by natural disasters such as last year’s Eaton and Palisades fires.
Advocacy groups also demand Charter commit to workplace diversity, equity, and inclusion in California. The National Institute for Workers’ Rights director, Jason Solomon, highlights the role of state regulators like the CPUC in leveraging their influence. Solomon emphasizes the importance of California protecting its laws and values.
The five-member commission will vote on the Charter-Cox merger, considering two proposals that allow the merger with different conditions. Charter scaled back diversity commitments amid former President Trump’s demands to eliminate DEI programs. FCC Chairman Brendan Carr also criticized these efforts as discriminatory.
In February, the FCC approved Charter’s acquisition of Cox’s cable and technology operations. Charter agreed to new safeguards against DEI discrimination to secure approval. In California, Charter faces pressure to embrace diversity commitments. Jessica J. González, co-CEO of advocacy group Free Press, stresses protecting diversity in a diverse state like California.
Charter’s public filings indicate plans to engage with diverse suppliers and collaborate with business groups. The company praises the transaction for promising lower prices, greater value, and improved service. Concerns heightened as one settlement, crafted by Commissioner Matthew Baker, lacked diversity efforts. Advocates found it weaker on broadband access provisions as well.
Advocacy groups push for measures ensuring everyone benefits from the merger, including preventing equipment charges on low-income plans. Commissioners must choose between Baker’s draft decision and Administrative Law Judge Jamie Ormond’s version, the latter favored for more compliance conditions.
Solomon’s group wants structural compliance measures for equal opportunity, including compensation reporting and pay equity audits. California previously required diversity measures, even when unpopular federally. For instance, Verizon’s commitment to diversity when acquiring Frontier Communications included significant partnerships.
If approved, the merger conditions include offering affordable broadband for low-income residents, with commitments to stand-alone broadband plans for five years. Charter plans a $275 million network upgrade and $30 million in customer outreach. Free broadband and Wi-Fi will support around 50 institutions, like schools and libraries.
Critics recognized Charter’s January 2025 equipment fees after fires, which they dispute, citing widespread efforts in burned areas. Digital Equity LA and the California Alliance for Digital Equity compiled data to assess the merger’s public interest.
Cox customers will experience service changes post-merger. Charter plans to introduce Spectrum products and fees. Customers may choose current pricing or switch to packages with apps like Disney+, Hulu, ESPN, and Paramount+. Charter intends to offer a year of free service for switching cellphone carriers to Spectrum. The combined company, retaining the name Cox, will drop the Charter brand within a year, while Spectrum remains the consumer brand.
Chris Winfrey, Charter’s CEO, reported to investors that the merged entity expects nearly 37 million customers nationwide. It projects annual revenue of $67 billion and earnings of about $28 billion before interest, taxes, depreciation, and amortization.