On May 16, Charter Communications Inc. (NASDAQ:CHTR) and Cox Communications announced a definitive agreement to merge their businesses to create a leading US cable and broadband operator. Shortly after the announcement, Craig Moffett of Moffett Nathanson joined CNBC's 'The Exchange' to discuss the merger:

"I think this deal is mostly about wireless. I think it's not a coincidence that in the press release about the deal this morning, Charter described both itself and Cox as providers of mobile and broadband service. I think it was striking that they put mobile first ahead of even broadband. And I think that speaks to what the real strategic logic here."

The transaction values Cox Communications at an enterprise value of $34.5 billion, which includes $21.9 billion in equity and $12.6 billion in net debt and other obligations. Charter will acquire Cox's commercial fiber, managed IT, and cloud businesses. Cox Enterprises will contribute its residential cable business to Charter Holdings, which is an existing subsidiary partnership of Charter.Craig Moffett Believes the Charter Cox Merger is Driven By Wireless Ambitions

A line of cable boxes and modern televisions, representing the company's video services.

Within a year of the deal closing, which is tentatively mid-2026, the newly formed company will rebrand as Cox Communications, with Spectrum becoming the customer-facing brand in former Cox service areas. The combined entity will serve about 12 million passings and 6 million existing Cox customers under Charter's Spectrum brand, and is expected to enhance innovation, provide competitively priced products, and deliver improved customer service.

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Disclosure: None. This article is originally published at Insider Monkey.

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