Comcast’s $45 billion merger with Time Warner Cable facing resistance from federal officials
Federal officials are reviewing Comcast's $45 billion merger with Time Warner Cable. The cable giant is fighting an uphill battle to get approval for the merger as it is facing resistance from the regulators. The Justice Department has some serious questions regarding the merger.
People familiar with the matter said that Comcast might ultimately walk away if concessions needed to win approval are too strict.
Comcast is the nation's largest cable company and largest broadband provider while Time Warner Cable is the second-largest company and the third-largest broadband internet provider.
Under Federal Communication's (FCC) definition of broadband, the new proposed merger would allow Comcast to gain control of nearly 34 million TV subscribers and 32 million broadband customers. Nationally, Comcast would account for a third of the pay-TV market and 57% of the broadband market.
Federal officers are determining whether the merger would be good or bad for consumers. Some of these experts in the Justice Department are reportedly against to approve the merger.
The Wall Street Journal reported that Comcast will meet with DOJ officials Wednesday in order to discuss what the company would have to do to get the green light from the government.
The Justice Department is looking at a deal's effect on competition and antitrust concerns. If it gets rejected or blocked, it would turn out to be a huge headache for Comcast.
The company has argued that the merger would lead to faster Internet service and a better TV experience.
Even if the deal gets approval, Comcast could fight the lawsuit or try to negotiate with the government in an effort to save the merger.