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Comcast’s Acquisition of Time Warner Remains Uncertain


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Tom Toggas examines the merger between Comcast and Time Warner that is currently under review.

Published in: Economy & Finance
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Comcast’s Acquisition of Time Warner Remains Uncertain

  1. 1. Comcast’s Acquisition of Time Warner Remains Uncertain By Tom Toggas
  2. 2. According to David Gelles and Emily Steel from the New York Times, Comcast’s acquisition, which was first announced more than one year ago, is far from inevitable. The proposed $45 billion merger would bring together the United State’s biggest cable companies. For much of the last year, many believed the deal would certainly come to fruition at some point. However, with the FCC’s new stringent proposal about internet governance, the merger could be in jeopardy.
  3. 3. Although the executive VP of Comcast, David Cohen, has reaffirmed that he is confident the merger will go through, advisors for both parties involved have noted that the deal is far from complete. Government officials from both the Federal Communications Commission and the Justice Department are examining all the data as they decide whether to approve the merger, and the concessions that these companies must offer in order to meet antitrust regulation. This examination is ongoing even as both companies are figuring out the small details of the deal.
  4. 4. One of the central issues that are under review by officials relates to whether these two companies would hold too much power over internet traffic, and how much Americans pay for access to the web. If the merger did go through, the resulting company would have control of more than one third the broadband internet service and just under one-third of TV subscribers. Tom Wheeler, Chairman of the Federal Communications Commission, has stated that he would like to regulate the internet like a utility.
  5. 5. If this becomes a reality, it would provide the FCC with the power to ensure net neutrality, namely that broadband providers are unable to charge certain companies for the privilege of allowing sites to load at a faster speed. If the merger was not allowed, it would certainly shake up the industry. However, Comcast is spending significant resources on the deal and are acting as if they are certain that the acquisition will not be blocked.