April 30th, 2015
Comcast originally announced the deal to merge with TWC back in 2014, which was valued at $45.2 billion in stock. The merge was met with criticism from not only the general public and government officials, concerned about already powerful television and Internet providers creating the potential of a monopoly;Â John Oliverâ€™s insights during theÂ June 1stÂ episode of â€œLast Week Tonightâ€ hammer home the danger of corporate giants ruling with an iron fist.
In a powerful statement that actually said very little, Comcast CEO Brian Roberts confirmed the deal was off, saying, “Today, we move on. Of course, we would have liked to bring our great products to new cities, but we structured this deal so that if the government didn’t agree, we could walk away. Comcast NBCUniversal is a unique company with strong momentum. Throughout this entire process, our employees have kept their eye on the ball and we have had fantastic operating results. I want to thank them and the employees of Time Warner Cable for their tireless efforts.”
Had the deal gone through, the combined company would have controlled 30 percent of market for pay TV and more than 50 percent of the broadband internet market. Wednesday, FCC staff reportedly recommended that the merger be subjected to a hearing with an administrative law judge. â€œThe companiesâ€™ decision to abandon this deal is the best outcome for American consumers,â€ Attorney General Eric Holder said in a statement.
It is unclear if the merger broke down due to increased pressure by the FCC or if Time Warner and Comcast could not decide who got to be the battleship and who had to be the thimble.
Categories: DISH & TV news