Charter Communications has offered to acquire Cox Communications, a $34.5 billion merger that would combine two of the top three cable companies in the U.S.

Cox is the third-largest cable television company in the country, with more than 6.5 million digital cable, internet, telephone, and home security customers. It has a strong foothold in states spanning from California to Virginia. Charter Communications, known more widely as Spectrum, has more than 32 million customers in 41 states.

The cable industry has been under assault for years from streaming services like Disney, Netflix, Amazon and HBO Max, as well as internet plans offered by mobile phone companies.

So-called “cord cutting” has cost the industry millions of customers and left them searching for ways to successfully compete.

Charter said Friday that it will acquire Cox Communications’ commercial fiber and managed IT and cloud businesses. Cox Enterprises will contribute Cox Communications’ residential cable business to Charter Holdings, an existing subsidiary partnership of Charter.

Cox Enterprises will own about 23% of the combined company's outstanding shares.

The transaction, which needs approval from Charter shareholders as well as regulators, includes $12.6 billion in debt.

The combined company will change its name to Cox Communications within a year after closing. It will keep Charter’s headquarters in Stamford, Connecticut, and have a significant presence on Cox’s Atlanta, Georgia campus following the closing.

After the deal is complete, Charter CEO Chris Winfrey will become president and CEO of the combined company. Cox CEO and Chairman Alex Taylor will serve as chairman.

Cox will be able to keep two directors on the 13-member board. Advance/Newhouse, which is part of Charter, will retain its two board members.

The transaction is expected to close at the same time as Charter's merger with Liberty Broadband, which was approved by Charter and Liberty Broadband stockholders in February.

Shares of Charter rose more than 8% before the market open. Cox is a private company.