Justice Division might attempt to block the Comcast / TWC merger
It has been greater than a yr since Comcast introduced its plan to purchase fellow cable big Time Warner Cable in a $forty five billion deal, nevertheless it nonetheless hasn’t acquired the blessings of varied regulators. Now, phrase is leaking out from unnamed sources to Bloomberg and the New York Occasions that means Justice Division legal professionals will advocate blocking the merger. Many shopper teams, politicians and executives from different corporations have raised considerations during the last yr that the mixture would put too many purchasers, and an excessive amount of of the nation’s web underneath one banner, regardless of a promise by Comcast to divest itself of some three million clients. Struck by a number of PR disasters, Comcast is making an attempt to enhance customer support and reassure skeptics that will probably be a pleasant big telecommunications firm, however hasn’t had a lot success convincing anybody that its plan will make cable TV higher.
The NYT report mentions that whereas Comcast might probably negotiate potential circumstances to put on the deal — a key a part of its NBCUniversal acquisition a number of years in the past — that course of hasn’t began but with the Justice Division or the FCC. Execs for each corporations are nonetheless publicly assured the deal will undergo, and fellow cable big Constitution has already made various acquisition plans. Nobody is aware of how lengthy it might take for the varied critiques to return to a conclusion, and even when the report recommends blocking the deal, it could possibly be overruled by the division’s senior officers. For now, we wait, however an replace might come when TWC studies its quarterly earnings April thirtieth, or throughout Comcast’s earnings report Might 4th.