Comcast is planning to buy Time Warner Cable in an all-stock deal valued at $US45 billion.
Is this deal going to be approved by the government? Comcast sure thinks it should be. And here is its slide on why it should happen.
Basically, Comcast says that it’s not going to reduce competition in the market. Time Warner Cable and Comcast have no coverage overlap. Comcast also notes that it will have less than 30% of the pay TV market.
Comcast EVP David Cohen said on a conference call about the deal, “This is simply not a horizontal merger. We do not compete in a single market in America.”
He said there is competition from other companies like DirecTV, Verizon, and AT&T. Those choices will not go anywhere if Time Warner, the second biggest cable company in the U.S., joins Comcast, which is the biggest.
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