Thats a hell of a deal to back out on. According to a Bloomberg Report ComCast the largest cable provider in North America is abandoning its $45 Billion bid to merge with Time Warner Cable. Sources are reporting that on Friday Comcast will make an announcement in a shocking change of events. The deal had been waiting federal approval for a year because of the sheer size of this merger. If successful the new company would have control over 57% of all United States homes that have standard broadband connection. Check out why the deal fell through after the jump
These are basically the two largest cable companies in North America so this merger was the formation of a monopoly. If the merger went through the new company would have had a monopoly on a huge percentage of broadband in the country which would hinder innovation in that sector. It seems though that the deal was doomed from the start because the Department of Justice and Federal Communications Commission set up regulatory roadblocks to slow down the legal process. The Federal Communications Commission or FCC told representatives from both companies that the agency wanted to terminate the merger because it did not help consumers. This is great news for consumers, alright news for Comcast investors, but troubling news for Time Warner Cable shareholders. TWC plans to tell its shareholders next Thursday how the company plans to survive on its own. Analysts say that this another cable consolidation will still occur but with other companies at the front.
Source: Bloomberg
