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Cable giants Charter and Cox are merging — but don't expect the cord-cutting bloodbath to reverse

1. Charter and Cox announced a $34.5 billion merger. 2. The merger aims to enhance competitive leverage against Comcast. 3. Charter's video losses are decreasing due to bundled streaming services. 4. The combined company will have 14.4 million video customers. 5. Despite mergers, cord-cutting trends remain a significant challenge.

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FAQ

Why Bullish?

The merger significantly enhances Charter's market position against competitors, particularly Comcast. Historical parallels with mergers in other sectors highlight improved operational efficiencies and customer retention post-merge.

How important is it?

The merger directly impacts Charter's competitive strategy and customer retention, crucial for future revenue.

Why Long Term?

This merger will yield benefits like cost savings and improved negotiating power over time. Historical mergers often take time to show full benefits on service and customer retention.

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