Charter Communications received the final approval needed to buy fellow cable and broadband provider Cox Communications after making concessions to California regulators, including a commitment to provide affordable internet plans for low-income households.
Charter agreed to acquire Cox in May 2025 in a $21.9 billion deal. The Federal Communications Commission signed off in February after Charter rolled back some diversity, equity and inclusion policies in line with the commission's request. The other 44 states where the companies do business already approved the deal.
California was the last state to give its approval. Regulators there had raised concerns about whether the DEI policy changes would conflict with state rules. The state requires that Charter report diversity data on its 6,300-employee California workforce and on business with suppliers owned by underrepresented populations.
The California Public Utilities Commission voted unanimously Thursday to approve the deal. To secure the commission's approval, Charter agreed to offer low-cost service for low-income households for five years and maintain existing price-lock commitments. The company must also contribute $30 million to a state fund for broadband adoption, digital literacy, green technology and computers for low-income households.
The deal combines Charter's 31 million customers with Cox's six million to create the nation's largest internet and video provider by subscriber base, spanning homes and businesses around the country.
It gives the companies added scale to defend their broadband businesses against aggressive competition from 5G home internet offered by mobile carriers like T-Mobile US, Verizon Communications and AT&T, as well as coverage offered by satellite providers like SpaceX's Starlink, which is eyeing ambitious growth in its internet-service business.
Verizon and T-Mobile also agreed to change some diversity practices last year while they had deals pending FCC approval. The California regulator was the last state to approve Verizon's acquisition of Frontier, due to concerns about conflicting federal and state-level diversity policies.
Charter and Cox expect their deal to close later this month. The combined company will adopt the name Cox Communications within one year of closing.