Comcast Calls Off Merger With TWC

by Wayne Friedman , April 23, 2015

With the heavy backdrop of federal regulators seemingly ready to give the thumbs down on the deal, Comcast will call off its $45 billion merger with Time Warner Cable, according to a Bloomberg report.

A formal announcement could come as early as Friday.

Recent reports have circulated that the Justice Department would be presenting a case against the deal, joining the Federal Communications Commission against approval. Public interest groups have said the merger would not be a benefit for consumers.

A merged deal among the companies would give the combined entity up to 60% share of the U.S. broadband business and 30% share of U.S. cable TV-video distribution business.

Bloomberg said FCC officials told the two biggest U.S. cable companies on Wednesday they are leaning toward concluding that the merger does not help consumers.

Comcast believed the combine companies could mean big benefits for consumers when it comes broadband and video services.

News of the deal being dropped helped lift the stock prices of the companies during the day. Comcast closed 1.0% higher to $59.36, and the stock was up around 2.5% in midday trading. Time Warner Cable closed down 0.8% to $148.45. The stock had been 4% higher in midday trading.

cable tv, fcc, m&a, regulation, television

3 comments about "Comcast Calls Off Merger With TWC".

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Jill Kennedy from Manka Bros., April 23, 2015 at 4:30 p.m.
These old media companies are on their deathbeds anyway. New media and new ways to deliver internet content will finally put them and their monopolistic ways out of their misery. But, alas, we're still sort of stuck in the middle of new and old media:
http://mankabros.com/blogs/onmedea/2013/02/27/stuck-between-old-and-new-media/

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Thomas Siebert from BENEVOLENT PROPAGANDA, April 23, 2015 at 4:37 p.m.

"Comcast believed the combine companies could mean big benefits for consumers when it comes broadband and video services."

Cuz it's sure played out that way so far!

Paula Lynn from Who Else Unlimited, May 1, 2015 at 6:22 p.m.

Because for the last 4 months Comcast has not gotten my billing correct and I am sure millions of others. If they would cut the cost to consumers by, let's say 50%, would they increase their subscribers by, let's say, 70% ? But higher membership would cost more than lower at higher prices. Why should Comcast or any company have to work harder for more customers when they can just raise prices to increase profit ? Where supply and demand laws twist. Of course, it is more complicated, but I do believe these are factors.