Boston, MA 09/09/2014 (wallstreetpr) – According to reports published in New York Post, the proposed merger between Comcast Corporation (NASDAQ:CMCSA) and Time Warner Inc. (NYSE:TWX) can create problems for its competitors. Experts think that if it gets executed successfully, then there are high chances that it will create a monopoly in the market.
Market Response:
As per the reports, the only authorized regulatory authority that can approve this transaction i.e. The Federal Communications Commission (FCC) has received more than 75000 complaints about the high-profile deal which is worth around $45 billion. According to experts, following are some of the major problems that could arise if this deal gets executed-
TV channels:
Comcast Corporation (NASDAQ:CMCSA) already covers more than 22 million homes in the entire country, after the merger with Time Warner Inc. (NYSE:TWX) it will get additional customer base of around 11.1 million subscribers. It means that after the merger, it will become big enough to ask other vendors to shut their operations.
Broadband:
Comcast Corporation (NASDAQ:CMCSA) has invested billions of rupees in setting up its broadband services over these years. After the merger transaction with Time Warner Inc. (NYSE:TWX) it will surely become the untouchable giant in this field, hence it may control production and distribution of content on digital media platform. It can also promote its products and services and make them paid services to generate extra revenues after this merger transaction.
Sports:
Comcast Corporation (NASDAQ:CMCSA) has the rights to broadcast NFL (one of the top rated shows on TV) and NHL. It also owns distribution rights of numerous regional sports channels as well. After the proposed merger transaction, it can control the broadcast of Olympics and also demand SEC Network to schedule all the programs according to its preferences.
These are three major concerns that a lot of people and small& large size vendors have. CMCSA can respond to these allegations by the end of September.
