Boston, MA 09/25/2014 (wallstreetpr) – Recently, Comcast Corporation (NASDAQ:CMCSA) alleged that Discovery Communications Inc. (NASDAQ:DISCA) asked for the business concessions from it in the form of a proviso for not opposing Time Warner Cable Inc (NYSE:TWC) bid. In its U.S. regulatory filing, the company said that the “extortionate demands” like these were “patently improper.” Also, Comcast said that the media company, which is “self-proclaimed” first ranked Pay-TV Programmer of the world, should not require an additional regulatory help for succeeding.
Comcast’s Allegations
The Executive VP of Comcast, David Cohen says that Discovery had approached the company after announcement of Time Warner’s bid. Also, Comcast Corporation (NASDAQ:CMCSA) alleged that Discovery wanted to negotiate on a new distribution agreement. Mr. Cohen said that Discovery was looking for higher fees and dominance for its channels.
Reuters, in the meanwhile, reported that according to one source, Discovery had approached Comcast, but it was prior to the announcement of merger. Also, the source said that the negotiations did not go ahead and there were no requests from Discovery to Comcast Corporation (NASDAQ:CMCSA) in association with the cable bid of Time Warner.
Discovery has a fleet of various channels which include Animal Planet, Discovery Channel, TLC and Oprah Winfrey Network.
Discovery’s Concerns Voiced out to FCC
Discovery said that it has already voiced out its concerns with the FCC regarding the Comcast-Time merger. According to Discovery, the merger will prompt Comcast to impose tougher terms on the programmers.
Instead, Discovery said, the silence of Comcast Corporation (NASDAQ:CMCSA) on some of the vital aspects like discounts of programs, poses a few questions.
A few weeks prior to this, Discovery had told FCC that the merger between Comcast and Time Warner Cable Inc (NYSE:TWC) will lead to lesser diversity in programming and diminished quality. Also, Comcast Corporation (NASDAQ:CMCSA) told FCC that this would lead to curtailment of autonomy of programmers.
Time Warner Cable Inc (NYSE:TWC) and Comcast are seeking a $45 billion merger.
