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Comcast vs. the USA: The battle begins

  • Comcast (CMCSA -3.4%) is on the offensive already with the DOJ on why its acquisition of Time Warner Cable TWC should go through.
  • In addition to shedding 3M subscribers, the company has committed to extend net neutrality to TWC systems and offer regional sports packages to rival Pay-TV providers at a reasonable cost.
  • Comcast guarantees some carriage of non-commercial educational TV stations - even if they give up their broadcast spectrum.
  • Expect the company to also argue vociferously that the growth of streaming concerns such as Netflix and Hulu gives consumers the requisite choices.
  • Though the focus on many is on the Pay-TV side, don't forget about broadband: If Comcast swallows TWC it will control close to half of the triple-play services in the U.S. Gigaom crunches the numbers to find the synergies add much faster on the broadband side as well.
  • Consumer advocacy groups are already active in pressing politicians for regulatory review on the deal, reports Re/code. It's unlikely that Comcast will pass down savings to consumers if they strike better deals with content providers, they argue.
  • Shares of TWC trade below $146 as investors discount that regulators will allow the deal in its current form to go through.
Comments (1)
  • omarbradley
    , contributor
    Comments (966) | Send Message
     
    that price on TWC is nowhere near the offer.

     

    Be interesting to see if someone comes along with a higher offer.
    Clearly the market isn't buying it.
    13 Feb, 03:48 PM Reply Like
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