Comcast Corporation (NASDAQ:CMCSA) has planned to sit down with Time Warner Cable Inc (NYSE:TWC), preparing to meet up the Justice officials at the US DoJ. They will negotiate concessions, easing regulators’ concerns pertaining to the imminent merger of the two cable behemoths.
Regulators To Decide Course Of Action
First time since the inception of $45.2 billion deal 14 months back, the giants have planned to sit down and discuss with the regulators in Wednesday, trying to figure out potential remedies. The Federal Communications Commission and US DoJ are having one mutual concern; ideally, on operating conjointly, the merged entity shall wield enough power on the internet broadband space, gaining unfair advantages against new entrants, TV channel owners or organizations offering online videos on demand.
FCC And DoJ Shall Scrutinize Deal
The DoJ will keep an eye on antitrust concerns, and FCC shall decide what suits for the public interest, as this deal has neared its crucial phase and needs scrutiny pertaining to the acquisition. Discussions reflect that the organizations are still undecided on the merger. However, this meeting opens the gateway for many more in due course. It is not clear if the regulators would be satisfied by the concessions offered.
The attorneys are asked to report on this issue sometime this week. The decisions taken would act as a binding and help narrow down the final decision-making. The combined entity shall serve roughly a base of 30 million consumers.
Earlier, Time Warner Cable Inc (NYSE:TWC) had agreed to impose stringent regulations on internet service, ensuring that broadband providers embark on net neutrality and treat all segments of web traffic equally. Sources having profound knowledge on the deal stated that if this deal gets abandoned, CMCSA won’t charge any break up free from TWC.
The deal is believed to be beneficial for consumers significantly, guarantee faster internet connectivity speed and warrant better cost savings.
