Comcast-Time Warner merger collapses under federal scrutiny
04/24/2015 04:22 PM
Comcast and Time Warner Cable’s proposed $45 billion merger is no more as the companies announced publicly Friday that the deal was aborted.
The deal was first proposed 14-months ago, but regulators with the Department of Justice and Federal Communications Commission expressed concerns that the combined companies, the two largest national cable providers, would have too much control over the spectrum.
“Comcast and Time Warner Cable’s decision to end Comcast’s proposed acquisition of Time Warner Cable is in the best interests of consumers,” FCC Chairman Tom Wheeler said in a statement. “The proposed transaction would have created a company with the most broadband and the video subscribers in the nation alongside the ownership of significant programming interests.
“Today, an online video market is emerging that offers new business models and greater consumer choice. The proposed merger would have posed an unacceptable risk to competition and innovation, including to the ability of online video providers to reach and serve consumers.”
If a deal had been approved Comcast would have controlled more than 50 percent of the nation’s broadband marketplace.
Time Warner Cable Chairman and Chief Executive Officer Robert D. Marcus said in a statement that he believes the company is a “one-of-a-kind asset.”
“Throughout this process, we’ve been laser focused on executing our operating plan and investing in our plant, products and people to deliver great experiences to our customers. Through our strong operational execution and smart capital allocation, we are confident we will continue to create significant value for shareholders,” Marcus said in a statement.
“I’m extremely proud of the professionalism, dedication and resiliency our 55,000 employees have shown over the past year and thank them for their continued commitment to Time Warner Cable.”
Time Warner Cable is the parent company of cn|2.
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