Competing companies have claimed the deal could lead to dangerously high levels of market share in the cable and broadband markets, while many consumer-advocacy groups and members of Congress are also discontented with the proposition. Cohen and his TWC equivalent, Arthur Minson will appear before the Senate Judiciary Committee Wednesday. One such member of that Senate panel, Gene Kimmelman, was at the Antitrust Division that approved Comcast’s 2011 acquisition of NBC. However Kimmelman, now head of Public Knowledge (a body that has openly denounced the Comcast-TWC merger), was also involved in rejecting AT&T’s proposed takeover of T-Mobile. The three primary areas of concern for Senator Amy Klobuchar, who will chair the Judiciary Committee’s Antitrust Board, are price, service and control. In an effort to gain support, Comcast has vowed to divest 3 million subscribers should approval be granted. This would preserve a combined customer base of 30 million people, just under 30% of the US pay TV video market. Both Comcast and TWC dropped marginally in Tuesday trading, shedding 0.47% and 0.23% respectively. The ongoing hearings should be followed closely. Investors will recall the 7% one day climb in TWC shares on the merger’s announcement in early February. Visit InterTrader to avail of tight fixed spreads, an easy to use platform and a joining bonus of up to £5000.
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Comcast seek regulatory approval for Time Warner Cable deal
Comcast Corporation has officially launched the regulatory review process for its proposed $45.2 billion acquisition of Time Warner Cable (TWC). USA’s largest cable company issued a filing with the Federal Communications Commission Tuesday specifying the benefits of merging with TWC. Both companies claim the merger would help towards increased competition in high-speed internet and cable TV services; thus benefitting advertisers, small businesses and ultimately consumers. Executive Vice President at Comcast, David Cohen, alluded to the obsolete “traditional boundaries between media, communications and technology” in advocating the merger. To date, the merger has met with opposition on a number of fronts (as predicted here - Comcast acquisition..).
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