Federal officials block Comcast’s $45 billion merger with Time Warner Cable

Comcast's $45 billion merger deal with Time Warner Cable is officially off.

Comcast informed about the closure of the deal by sending a letter to Pasco on April 27. The letter was addressed to Gary Crutchfield, who retired as Pasco city manager in June 2014.

Although the cities of Pasco, Richland, West Richland and Kennewick all approved the transfer from Charter to Comcast last year, Pasco Mayor Matt Watkins opposed it due to Comcast's low ranking in customer service surveys.

Comcast announced the termination of its merger agreement citing that the deal was facing resistance from federal officials.

The cable giant was fighting an uphill battle to get approval for the merger. However, the Justice Department wasn't sold on the idea and had some serious questions regarding the merger.

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 merger proposed would allow Comcast to 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 were determining whether the merger would be good or bad for consumers. Although Comcast argued that the merger would lead to faster Internet service and a better TV experience, some of these experts in the Justice Department went against to approve the merger.

Shares of Comcast closed up 1.13% to $58.41 in Friday's regular trading session. The company is expected to report earnings of 74 cents per share on revenue of $17.41 billion its first quarter 2015 that will be released on Monday.