Spectrum parent company completes $34.5B Cox Communications takeover

One internet giant just swallowed another in a massive $34.5 billion deal that could impact millions of California customers.

Charter Communications, the parent company of Spectrum, completed the acquisition of Cox Communications Aug. 20 after the California Public Utility Commission approved the deal, giving the company its final regulatory green light.

The blockbuster takeover expands Charter’s reach to 45 states and roughly 35 million customers.

In California alone, the company’s network will provide coverage to more than 16 million people across the state.

For now, Cox customers are being told not to expect any immediate shake-up.

Charter CEO Chris Winfrey said customers will see “no changes to their Cox service or pricing and packaging unless they choose to make a change themselves.”

But that could change soon.

Spectrum branding, pricing and packaging are scheduled to roll out across former Cox markets beginning in mid-September.

And there’s a reason some consumers may want to keep a close eye on their monthly bills.

Charter’s last major cable acquisition offers a glimpse at what can happen after the dust settles.

In May 2016, Charter completed its $78.7 billion acquisition of Time Warner Cable, including debt, along with its purchase of Bright House Networks.

By October of that year — former Time Warner customers in Southern California were facing higher bills as their old promotional rates expired and Charter moved them onto Spectrum packages, according to The Los Angeles Times.

By 2017, Charter said 30% of its Time Warner Cable and Bright House legacy customers had been moved onto its new pricing plans.

Many of those customers were paying more, according to Ars Technica.

The previous merger does not mean that Cox customers will see their prices increase.

But it shows how pricing can change after a major cable acquisition, particularly once legacy plans are eventually replaced.

Charter is also using the Cox takeover to push Spectrum’s broader menu of products and pricing into the newly acquired markets.

Southern California customers are also getting something they couldn’t get from Cox before: Dodgers games on SportsNet LA.

The Dodgers-owned channel had previously been unavailable to Cox customers because the cable company declined to carry it over licensing costs.

Download The California Post App, follow us on social, and subscribe to our newsletters