2. Proposed Transaction

Under the proposed transaction, Cox will be transferred from CoxCom, LLC to Cox CA pursuant to an internal corporate reorganization within the Cox network of companies. Cox CA will receive CoxCom, LLC's assets and will commence providing the cable television and high speed internet in California that Cox Com, LLC currently provides. Cox CA will provide services in California only.⁶

The Applicants represent that the corporate reorganization, set forth in the proposed transaction, is intended to align Cox's various lines of business with a single corporate entity operating only in California.⁷ Cox California Telecom only operates in California. The proposed corporate reorganization will duplicate that telecommunications structure with respect to cable television and high speed internet in California. The Applicants assert that the proposed structure will streamline the administrative filings that CoxCom, LLC is currently required to and that Cox CA will be required to file on a going forward basis.⁸ Applicants believe that streamlined filings and a corresponding reduction in paper work will reduce operational burdens, benefiting their customers and shareholders.

⁶ Cox's Supplemental Information, dated December 14, 2011.

⁷ Id.

⁸ Id. at 2.