The official reports are coming in as ‘Comcast’ has revealed their abandonment of its $45 billion merger with ‘Time Warner Cable’. It is reported that ‘Comcast’ was actually pulling out. US regulators had begun to speak against to the deal over the past few days, which would have brought the US biggest cable companies together.
Comcast Chairman stated “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.”
CEO Brian Roberts in a statement “Comcast NBC Universal 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. I couldn’t be more proud of this company and I am truly excited for what’s next.”
Last February ‘Comcast’ and ‘Time Warner Cable’ two largest cable and broadband giants in US announced to merge together. Despite their size, Comcast argued that the two served different enough markets that customers would not notice a drop in competition.
However the proposal died this week after companies met with the ‘FCC’ and ‘Justice Department’ both of whom expressed concerns about the power of a combined Comcast and Time Warner Cable. It doesn’t appear as if either party has to pay a severance fee to the other, which should make walking away a little easier.