In a very short statement this morning, Comcast has confirmed the rumours that have been floating around the past couple of days. The Comcast-Time Warner merger, which was pegged at over $45 billion, is in fact dead.
Comcast announced that the merger agreement with Time Warner Cable as well as a transactions agreement with Charter Communications have both been terminated. It sounds like the FCC didn’t like the particulars of the deal according to a statement by CEO Brian L. Roberts.
“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.
Comcast NBCUniversal 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.”
Time Warner Cable CEO Robert Marcus also responded with a statement.
“We have always believed that Time Warner Cable is a one-of-a-kind asset. We are strong and getting stronger. Throughout this process, we’ve been laser focused on executing our operating plan and investing in our plant, products and people to deliver great experiences to our customers.”
Since the proposed merger was announced last year, various organizations and companies – including Netflix, DISH Network, and others – have been lobbying the FCC against the move. Netflix’s main argument against the merger was that it would harm online video services such as Netflix, Hulu, and others; not to mention the huge advantage a combined company would have in all aspects of Internet access and content distribution.
Let us know in the comments below on what you think about Comcast pulling out of the merger with Time Warner Cable in the comments below, or on Google+, Twitter, or Facebook.Source: Comcast