Comcast Corp's (NASDAQ: CMCSA) proposed $45.2-billion U.S. takeover of Time Warner Cable Inc would combine the country's top two cable providers into a colossus that could reshape the U.S. pay TV and broadband industry if it clears regulatory hurdles.
The cable provider resulting from the merger will boast a footprint spanning from New York to Los Angeles with a near-dominant position in broadband Internet which may raise the hackles of anti-trust regulators.
The deal, which would put Comcast in 19 of the nation's 20 largest TV markets, could give it unprecedented leverage in talks with content providers and advertisers.
One expert noted that while Comcast and Time Warner Cable don't directly compete in any markets and could help consumers by keeping programming costs in check, "the government could still object and may be more concerned about one company controlling so much of the country's broadband infrastructure."
The friendly takeover announced on Thursday comes as a surprise after months of public pursuit of Time Warner Cable by smaller rival Charter Communications Inc, and immediately raised questions as to whether it would pass the scrutiny of regulators.
Comcast will pay $158.82 U.S. per share, which is roughly what Time Warner Cable demanded from Charter.
Comcast shares dipped $1.78, or 3.2%, in mid-morning trade on Thursday, to $53.46 U.S., in a 52-week range of $38.75 U.S. to $55.28 U.S.
Tech Insider
