Spectrum owner Charter Communications is finalizing its $34.5 billion acquisition of Cox Enterprises, positioning to become the largest internet and cable television provider in the U.S. California’s Public Utilities Commission (CPUC) will vote soon on the merger, which would expand Southern California’s main provider to over 5 million customers. Although federal officials approved the deal some time ago, California’s consent remains the final step.
Customers of Cox, an Atlanta-based company serving areas like Rancho Palos Verdes and Las Vegas, will transition to Spectrum services. Charter, already a leader in the industry, offers internet, phone, and cable TV packages across many California counties. After more than a year since the announcement of their partnership, the firms anticipate merging operations soon.
Public interest groups have challenged the CPUC’s provisional settlement with Charter, insisting stronger assurances for affordable internet access for low-income residents and improvements in disaster accommodation are needed. They also demand Charter commit to workplace diversity, a topic that has faced pressures since Trump’s tenure.
“State regulators like the CPUC have an important role to play — they have a voice and leverage if they choose to use it,” said Jason Solomon, director of the National Institute for Workers’ Rights in the Bay Area.
The CPUC panel will deliberate on two proposals to permit the merger, each with different conditions. Charter once vowed to uphold a diverse workplace but muted its position due to federal demands against diversity programs.
The FCC cleared Charter’s purchase of Cox’s residential cable and technology divisions in February, requiring safeguards against DEI discrimination. Charter is currently balancing federal consent with state-level demands. Free Press co-chief executive Jessica J. González emphasized the importance of retaining workplace diversity in California.
Charter pledged to work with diverse suppliers, engaging with various business associations. It claims the merger benefits consumers with lower prices, better service, and support from a U.S.-based workforce.
Concerns heightened when one proposal, emerging between Charter and Commissioner Matthew Baker, didn’t include diversity efforts. Advocates urge adoption of administrative law judge Jamie Ormond’s version for its inclusive compliance measures. They argue the state utilities code mandates the rejection of a weaker deal.
Past state rulings, like Verizon’s acquisition of Frontier Communications, included diversity measures. Both Charter proposals demand low-cost internet options and network upgrades worth $275 million. Additional investments in digital literacy and device access are also planned.
Post-merger, Cox subscribers will transition to Spectrum offerings. Spectrum plans to unveil its product suite and provide alternate pricing options for current Cox users. Subscribers switching mobile services to Spectrum will receive a year of free service. Eventually, the combined company assumes Cox’s name, though the Spectrum brand remains for consumer products.
The merger will position the combined company with nearly 37 million customers, expected to generate $67 billion in annual revenue, as stated by Charter CEO Chris Winfrey.