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Major case: Cox Communications.

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MAJOR CASE: COX COMMUNICATIONS 1. Why is CCI acquiring Gannett? Does the Gannett acquisition make sense at $2.7 billion? CCI has several objectives in the acquisition of Gannet; firstly the acquisition will give CCI and COX a strategic increase in market share (522,000 customers). This increase is strategic because it follows with Cox's strategy of localization, to take advantage of economies of scale. On a national scale, consolidation provides bargaining power when dealing with content providers, in addition the ability to add additional "bundled customers" is highly valuable. According to Jim Robbins CEO of COX "bundling is a key part of our strategy as it strongly enhances our competitive positioning by making our products and services 'stickier'. The results so far indicate significant improvement in the retention rates of our bundled customers. In addition, our customers are increasingly bundling their services, demonstrating that they enjoy the simplicity of purchasing multiple services from...

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