Charter Stock Sinks As Internet Subscriber Losses Worsen; Could A Comcast Merger Be The Next Move?

Charter Communications shares fell 5% in early trading Friday after the pay-TV, broadband and wireless provider reported wider internet subscriber losses in the third quarter. During the quarter, in August, Charter closed its $34.5 billion acquisition of rival Cox Communications, expanding its footprint to 45 states. Quarterly results, reported on a pro forma basis to account for the merger, showed continued erosion of internet and pay-TV customers. Wireless remains a comparative bright spot, with 1.8 million sign-ups over the past year giving the company 13.5 million wireless customers as of September 30. The company shed 233,000 internet customers – 156,000 at legacy Charter and 77,000 at legacy Cox – in the quarter. The subscriber total sat at 34.3 million as of the end of the quarter. Wireless and satellite internet providers, including Elon Musk’s Starlink, have put pressure on major broadband players like Charter and fueled speculation about a potential Charter-Comcast tie-up. Comcast is about to split off NBCUniversal from its connectivity business, which faces similar headwinds. Watch on Deadline Along with the quarterly results, CEO Chris Winfrey unveiled plans to cut $2 billion in costs and reaffirmed a projection for $1 billion in merger-related synergies. Investors seemed underwhelmed, with Friday’s downturn in the stock price extending a 43% drop in 2026 to date. Cord-cutting continues to eat away at pay-TV levels, even though Charter’s Spectrum systems have integrated streaming services aggressively enough to stem the downturn more than many operators. Total video customers fell by 77,000 in the quarter, compared with a decline of 121,000 a year ago. The total subscriber base was 13.8 million at the end of the quarter. Total company revenue rose 9% over the year-earlier period, reaching $14.9 billion. Gregory Williams, an analyst for TD Cowen, anticipated the Friday trade in a client note earlier this week. “Investors may not get constructive until they see a resting place on broadband subscriber losses,” he wrote. “The next catalyst could be a Comcast/Charter tie-up, which may need to occur sooner rather than later given the midterm election results as a broader regulatory signal.”