Boston, MA 02/21/2014 (wallstreetpr) – Comcast Corporation (NASDAQ:CMCSA) new deal to acquire Time Warner Inc (NYSE:TWX) is facing increasing reprisal from other industry players especially DIrecTV who feel the market could end up being a monopoly. DirecTV executive officer Michael D White on his part has asked the US regulatory to look into the matter, as the deal will only cause an “effective broadband monopoly”. The chief is of the opinion, Comcast could control as much as two thirds of the industry as soon as the merger is finalized.
Effects of Comcast and Tie Warner merger
White maintains they are still in negotiations to determine what course of action to take if the merger gets the approval from regulators. The merger deal is to be reviewed by the Federal Communications Commission and either the U.S. justice department or federal trade commissions. The approval of the deal will only lead to an unprecedented media control by one company which is not good for other small companies in the industry. This on the other hand could be more beneficial to Comcast Corporation (NASDAQ:CMCSA) which essentially increase its consumer subscription, more easily without any competition
Comcast Corporation (NASDAQ:CMCSA) on their part maintain the merger will not reduce competition in the industry as the two cable providers do not have any overlapping markets. According to Comcast the deal will be more beneficial to the end user as it will present them with higher broad band speeds.
Comcast Corporation (NASDAQ:CMCSA) plans to submit its documents for the acquisition of Time Warner Inc (NYSE:TWX) to the Federal regulators as early as the end of March during the launch of antitrust and public interest reviews. The merger is sure to illicit lots of scrutiny from the regulators, the merger will essentially give Comcast enough power to determine what Americans watch on TV or do online
Comcast Corporation (NASDAQ:CMCSA) was stable on Thursday trading sessions lightly moving up by 0.37% to close the day at $51.76.
