Sign in Subscribe
Telephone services

Cox Communications Completes Multibillion-Dollar Purchase, Fueling Speculation on Industry Consolidation

Strategic Insights

— 1 min read

The Atlanta-based cable TV operator, Cox Communications, has completed its purchase of cable systems in the south-central United States for $2.8 billion in AT&T stock. This deal brings in 495,000 new subscribers in Louisiana, Oklahoma, Texas, and Arkansas, solidifying Cox's position in the region. With this acquisition, Cox Communications has likely completed its $8.2 billion buying spree, which began in April. Analysts believe that Cox is now "pretty set" and may only need to make one more deal to reach 6 million subscribers.

Key Takeaways:

  • Cox Communications has completed its multibillion-dollar purchase of cable systems in the south-central United States.
  • The deal brings in 495,000 new subscribers in Louisiana, Oklahoma, Texas, and Arkansas.
  • Cox Communications now has 5.5 million subscribers, up from 3.8 million less than three months ago.
  • Analysts believe Cox is "pretty set" and may only need to make one more deal to reach 6 million subscribers.
  • Cox Communications has been expanding its cable TV business by rebuilding its systems to carry digital services.
  • The company has used the proceeds from the sale of nonstrategic assets to expand its cable TV business and build clusters in key regions.
  • Cox Communications has been an industry leader in rebuilding its systems to carry digital services, offering telephone service and high-speed Internet access in Orange County and San Diego, California.

Statistics:

  • 495,000 new subscribers added in Louisiana, Oklahoma, Texas, and Arkansas.
  • Cox Communications now has 5.5 million subscribers.
  • The company has completed an $8.2 billion buying spree, which began in April.
  • 17 million subscribers when AT&T's purchase of MediaOne closes later this year.
  • AT&T has spent $100 million in the past year to become the largest cable operator.

Sources:

  • Atlanta Journal-Constitution
  • New York investment bank Solomon Smith Barney
  • Boston-based industry consultant the Yankee Group
  • Cox Communications
  • AT&T
  • Teleport Communications
  • Time Warner

Read more