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Spectrum owner Charter Communications is nearing the finish line in its long-awaited $34.5-billion purchase of Cox Communications to form the nation’s largest internet and cable television company.
California’s Public Utilities Commission is scheduled to vote next week to approve the merger that would bolster Southern California’s dominant provider with more than 5 million customers. Securing the approval of California regulators — the deal’s final hurdle — has been a slog as federal officials gave Charter their consent months ago.
Customers of privately held Cox, the Atlanta-based company that serves Rancho Palos Verdes, Rolling Hills Estates, Las Vegas and large parts of Orange and San Diego counties, would be switched to Spectrum service. Charter is the industry leader, providing Spectrum internet, phone and cable TV packages for Los Angeles, Riverside, San Bernardino and Ventura counties.
It’s been more than a year since the companies unveiled their proposed union, and they hope to combine operations this month. But flaps have flared up in the last lap.
Public interest groups have argued that the PUC’s proposed settlement with Charter doesn’t go far enough to ensure long-term affordable internet for low-income residents or accommodations for customers reeling from natural disasters such as last year’s Eaton and Palisades fires.
In addition, advocates have asked utilities commissioners to demand that Charter commit to fostering workplace diversity, equity and inclusion among its proposed 9,000-member workforce in California. Such programs have been under siege since President Trump returned to the White House.
“State regulators like the CPUC have an important role to play — they have a voice and leverage if they choose to use it,” said Jason Solomon, director of the National Institute for Workers’ Rights, a Bay Area group that is lobbying for Charter to renew its commitment to a diverse workplace.
“It’s important that California stand up for its own laws, policies and values,” Solomon said.
The five-member commission is set to vote on the Charter-Cox merger Thursday. The panel will consider two competing proposals; both would allow the merger to go through with various conditions.
Charter years ago pledged to create a diverse workplace but scaled back its public statements amid Trump’s vocal demands that companies dump DEI programs. Trump’s Federal Communications Commission chairman, Brendan Carr, also has championed eliminating diversity programs, saying they are discriminatory.
The FCC in February approved Charter’s proposed purchase of Cox’s residential cable, commercial fiber, cloud and information technology businesses. To win Carr’s approval, Charter agreed to “new safeguards to protect against DEI discrimination,” according to the FCC.
Charter is in a bind. It disavowed diversity efforts to win the FCC’s blessing but now is facing calls in California to embrace such commitments.
“In a state as diverse as California we should protect diversity in the workplace,” said Jessica J. González, co-chief executive of advocacy group Free Press. “We have a responsibility to stand up to what’s been going on in the federal government, and in the Trump administration, to force companies to roll back their policies.”