Six U.S. senators asked the Justice Department and Federal Communications Commission to reject the proposed merger deal of Comcast Corporation (NASDAQ:CMCSA) and Time Warner Cable Inc (NYSE:TWC). The deal is valued at $45 billion. The call of rejection came from Independent Senator Bernie Sanders and Democratic Senators Al Franken, Elizabeth Warren, Richard Blumenthal, Edward Markey and Ron Wyden, in letters to U.S. Attorney General Eric Holder and FCC Chairman Tom Wheeler.
No basis
The senators wrote that should the deal survive the DOJ’s and the FCC’s reviews, they believe that cable provider unmatched power in the telecomm industry would result in poorer quality services, fewer choices and higher prices for Americans. At the same time, Time Warner Cable Inc (NYSE:TWC) said that there is no basis for Justice Department to block Comcast deal. The company has been working productively with the FCC and the DOJ.
The antitrust perception
Staff attorneys at the DOJ’s antitrust segment are approaching a recommendation to cancel the proposed $45 billion merger deal of Time Warner and Comcast Corp. A spokesman for Time Warner said that they had no indication from the Justice Department that this is true. The attorneys investigating the merger deal are highlighting concerns for customers as they lean against it. The review is expected in the week.
The other details
The Federal Communications Commission is gathering vital information from other firms, making it early for talks of conditions for a merger. The FCC, which as well as the DOJ is reviewing the deal, earlier in April stopped the informal countdown as it awaited a court ruling linked to handling disclosures of some of the documents. A spokeswoman for Comcast also said that there is no reason for a court ruling to block the proposed merger deal. The pause from FCC would force the decision of the regulatory review to mid-year. The deal is expected to benefit both businesses and customers.
