• by Wayne Friedman , Yesterday

Charter Communications and Cox Communications -- two of the biggest legacy cable TV-based companies -- are merging in a massive $34.5 billion deal. 

This comes as the industry has been shrinking over a number of years due to cord-cutting of traditional pay cable TV systems.

Both companies -- as well as other original cable-based TV companies -- have placed greater emphasis on residential broadband business for more than a decade now.

Charter’s Spectrum cable and broadband will continue to be the consumer-facing brand.

The corporate name will change to Cox Communications.

Chris Winfrey, president and CEO of Charter, will continue as president/CEO of the new combined company.

Charter has 12.7 million cable customers and 30 million broadband customers in 41 states.

Cox Communications --- a division of Cox Enterprises, a private company -- has about 6.5 million overall cable/broadband/mobile residential and commercial customers in 30 states.

Cox Enterprises will control 23% of the combined shares in the new company.

Charter posted 181,000 in cable TV subscribers losses during its most recent quarter. 

The deal will consist of $21.9 billion of equity and $12.6 billion of net debt and other obligations.

Jeffrey Wlodarczak, CEO/internet, media, sports and communications analyst of Pivotal Research Group, said in a note that Charter’s success comes in bundling its broadband, cable TV, as well as mobile businesses.

“[This has been] allowing them to outperform their peers... We believe these operating strategies are absolutely transferable to the Cox footprint and again [for] Charter shareholders.”