Pro Forma Financials for Cox Acquisition Reveal $14.3B Deal Impact
CHTR sits 31% above its 52-week low of $111.55.
Summary
Charter Communications filed pro forma financials for its Cox Communications acquisition, revealing a $14.3 billion deal that would have generated $33.2 billion in pro forma revenue for H1 2026 and $2.2 billion in net income to Charter shareholders, while adding significant debt and new equity units.
Key Events · M&A and Partnerships · CHTR
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Pro Forma Financials Filed
Unaudited pro forma combined financial statements for the Cox acquisition were filed, showing pro forma revenues of $33.2 billion for H1 2026 and $67.4 billion for full-year 2025, with net income attributable to Charter shareholders of $2.2 billion and $1.4 billion, respectively.
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Deal Consideration Details
The preliminary purchase price stands at $14.3 billion, comprising $4.15 billion cash, 33.6 million Charter Holdings common units valued at $4.78 billion, and convertible preferred units valued at $5.38 billion. The combined entity will assume approximately $12.4 billion in Cox net debt and finance leases.
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Pro Forma Balance Sheet Impact
Pro forma total assets are $183.8 billion, with total shareholders' equity of $32.9 billion. Long-term debt climbs to $107.2 billion, reflecting the new debt issued to fund the cash portion and the assumption of Cox's debt at fair value.
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Earnings Per Share Impact
Pro forma basic EPS was $17.87 for H1 2026 and $10.19 for full-year 2025, reflecting dilution from the new units issued to Cox Enterprises. Diluted EPS was $17.59 and $10.00, respectively, after accounting for convertible preferred units.
Analysis · CHTR · Technology
For the first time, investors can assess the full financial profile of the combined company, as Charter Communications filed detailed pro forma statements for its pending acquisition of Cox Communications. The preliminary purchase price totals $14.3 billion, split among $4.15 billion in cash, 33.6 million Charter Holdings common units valued at $4.78 billion, and convertible preferred units valued at $5.38 billion. On a pro forma combined basis, revenues would have reached $33.2 billion for the first half of 2026 and $67.4 billion for full-year 2025, with net income attributable to Charter shareholders of $2.2 billion and $1.4 billion, respectively. While the deal significantly expands Charter's scale, it also layers on roughly $12.4 billion in net debt and finance leases, pushing pro forma total debt to $107.2 billion. Pro forma earnings per share of $17.87 (basic) for H1 2026 reflect the dilutive effect of the new units issued to Cox Enterprises, though management expects the transaction to be accretive to free cash flow per share over time. This filing delivers the critical data needed to weigh the transformative acquisition's financial merits and risks.
At the time of this filing, CHTR was trading at $146.56 on NASDAQ in the Technology sector, with a market capitalization of approximately $19.4B. The 52-week trading range was $111.55 to $285.82. This filing was assessed with neutral market sentiment and an importance score of 8 out of 10.