FCC Might Oppose The Merger Of Comcast Corporation (CMCSA) And Time Warner Cable Inc (TWC)


Federal Communications Commission (FCC) has decided to further increase the difficulties of the proposed acquisition of Time Warner Cable Inc (NYSE:TWC) by Comcast Corporation (NASDAQ:CMCSA).

The commission seems to believe the deal is not in the public interest
According to sources, FCC wants Comcast Corporation (NASDAQ:CMCSA) to face legal proceedings before making the deal. The FCC will recommend a procedural move that will significantly affect the deal. Some of the staff at FCC has concluded that it is best to issue a “hearing designation order”. If such decision is finalized, both the companies would have to face administrative law judge. The $45.2 billion merger will be in jeopardy. Additionally, if the matter goes in court, the company will lose good faith among stockholders.

The FCC has taken keen interest in corporate deals lately. With number of antitrust probes against major companies, the FCC is seeking control over business administration. Though the current discussions are not anything near to finalized talks, it is more than likely that the FCC will stay firm on their current course of action. Their still chance for Comcast Corporation (NASDAQ:CMCSA) and Time Warner Cable Inc (NYSE:TWC) to work out the details of the merger and offer a plausible case to FCC so as to avoid the legal battle that might lie ahead.

Executives from Comcast Corporation (NASDAQ:CMCSA) visited the officials of FCC this Wednesday. The company has claimed that the deal is in public interest. The company’s argument focused on the better service for customers of Time Warner Cable Inc (NYSE:TWC). However, the company has denied disclosing the details of the discussion with FCC officials. The government is concerned about the effect this deal will have on broadband and television market.

The Justice Department officials voiced concerns in a recent meeting with Comcast Corporation (NASDAQ:CMCSA) executives. Both the companies have declined to comment on the matter. However, it is clear that this deal holds much larger significance for both the companies that have already prepared for the deal.