http://www.nytimes.com/2015/04/25/opinion/putting-an-end-to-a-bad-comcast-merger.html
Comcast and Time Warner Cable officially terminated their $45.2 billion merger Friday. The deal, which was announced in February 2014, was under review by U.S. federal regulators for more than a year. Starting last week, multiple reports suggested the merger of the cable industry’s two largest players was getting stiff resistance from the Federal Communications Commission and Justice Department. The decision to scrap the proposal altogether followed a meeting between FCC officials and executives from Comcast and Time Warner Cable.
6 comments:
Comcast was having operational issues since over a year. This merger proposed a brighter future for the company but the breakdown of the merger does not come as a surprise. The market was predicting that the regulatory authorities might not allow the consolidation
I am not surprised that the merge was scrapped. I am sure the other cable providers were throwing a fit with an anti-competitive argument. Combining the market share of the two companies into one could have a monopolistic effect.
I completely agree with Kevin. I have no doubt that merging the companies would have formed some sort of monopolistic effect. I am not surprised by the decision.
This is an excellent example of regulations for monopolistic behavior in the country. I wonder if consumers would have been better off though with these mergers. An example is the airline industry, where the airlines really try to avoid competing with each other and have successful mergers.
This merger would have hurt consumers and marketing firms. They would have been able to raise the prices for tv and internet services and also charge ad companies ridiculous prices. If Time Warner Cable acquired Comcast, it would have been one powerful monopoly. Thankfully the treat of the Justice department made Time Warner Cable retract.
I am glad they did not create their large firm because with the super sized Comcast would have controlled 20 major cities and could have done some devastating things to customers including limiting choices. Choices are valuable in our market.
Post a Comment