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Reports are abuzz that American cable provider Comcast is likely to call off its USD 45 billion acquisition attempt to buy rival Time Warner Cable amid the recent reports that both the Federal Communications Commission (FCC) and the US Department of Justice are preparing to turn against the billion dollar agreement after spending months while looking into what the proposed merger would mean for competition in the country’s cable market.
The decision has apparently come after the company witnessed an increased scrutiny and stiff opposition from the federal regulators, forcing it to walk away from the proposed merger that would have resulted in the combination of the country’s top two cable operators.
According to the sources, the company has still not revealed its mind over the cancellation of the deal and an official announcement in this regard could arrive as early as tomorrow.
Both Comcast and Time Warner Cable had formally announced about their merger plans in February last year. The shareholders of both Comcast and Time Warner Cable had signed off on the idea last October. But the companies met a huge hurdle of regulatory approval.
Comcast has taken out public campaigns in favor of the acquisition deal for over a year now. However, the merger proposal has witnessed a fierce opposition from the rival firms and critics, who are warning that a Comcast-Time Warner Cable combination would control 40 percent of the broadband market of the United States. Moreover, they also believe that the merger will lay claim to a drastic hold in the share of the cable market.
The FCC has yet to take decision over the deal that whether it is in the public interest. Also, the US Justice Department will be ruling that the merger does not harm competition in the cable market.
