Charter Closes $34.5B Cox Deal, Stock Sinks 4.7% on Debt and Subscriber Fears
CHTR sits 32% above its 52-week low of $111.55 on light trading volume (0.4× avg).
Summary
Charter completed its $34.5B acquisition of Cox Communications, creating the nation's largest internet and video provider with 37 million customers. The stock fell 4.7% on the news, extending its year-to-date decline to 30%. Investors are focused on Cox's declining subscriber base—BNP Paribas estimates 5% annual losses—and Charter's significant debt load, which the deal increases. Analysts see a potential Comcast merger as a longer-term possibility but not imminent, with integration of Cox the immediate priority.
Updates
· SEC 8-K — Charter issued 60.0 million convertible preferred units with $6.0 billion liquidation preference and 6.875% coupon, plus 33.6 million common units priced at $353.64, and paid $3.5 billion cash for Cox's commercial fiber and managed IT businesses.
At the time of this announcement, CHTR was trading at $147.68 on NASDAQ in the Trade & Services sector, with a market capitalization of approximately $19.8B. The 52-week trading range was $111.55 to $285.82. This news item was assessed with negative market sentiment and an importance score of 7 out of 10. Source: Dow Jones Newswires.