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The multi-billion dollar merger talks between the top two cable companies of the United States, Comcast and Time Warner Cable (TWC) came to an end on Friday amid heavy federal regulatory pushbacks.

The plan of acquisition was abandoned by Comcast after both US Department of Justice and Federal Communications Commission (FCC) blocked the merger after raising concerns that the deal would give the company an unfair advantage over other players in the cable TV and web-based services market.

Announcing the development, Comcast CEO Brian Roberts issued a statement this morning 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.”

Commenting over the end of the merger talks, TWC chief executive Robert Marcus said, “Time Warner Cable is a one-of-a-kind asset that continues getting stronger, thanks to the company’s commitment to bring great experiences to our customers.”

Reacting over the termination of the deal between the two leading cable companies, FCC chairman Tom Wheeler said, “The proposed transaction would have created a company with the most broadband and the video subscribers in the nation alongside the ownership of significant programming interests.”

Echoing similar sentiments on the failed merger, Attorney General Eric Holder said, “This is a victory not only for the Department of Justice, but also for content and streaming services providers who work to bring innovative products to consumers across America and around the world.”

The proposed acquisition deal, which was formally announced by the companies last February, had received sever criticism from several politicians, media firm executives, rival cable companies, industry and consumer groups, who had raised concerns that the merger would lead to the creation of a monolith with too much control over what Americans watch on TV or do online.

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.

Comcast-TWC acquisition deal fails amid federal pushback

Comcast likely to drop plans to merge with Time Warner amid fed hurdle

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