The planned merger of Time Warner Cable Inc (NYSE:TWC) and Comcast Corporation (NASDAQ:CMCSA) has enhanced the tensions of all the small players in the industry. Many of them complained to U.S. government for not allowing these two firms to merge. As per the reports, the representatives of Time Warner and Comcast are all set to meet with the officials of U.S. Department of Justice to have a discussion on various competition concerns. Wall Street reported some time back that the mega merger worth $45 billion between these two giants had threatened many other companies in the cable and broadband industry.
The Road Ahead:
The meeting between the representatives of Time Warner Cable and Comcast Corporation will take place on the next Wednesday. It’s been over a year when both of these companies announced to merge, but they had never met with U.S. regulators. It will be the first time when the representatives of these companies will have a face to face discussion with the U.S. regulators.
The primary concern of the Federal Communication Commission and Justice Department is that if both the companies merge, the combined entity will become too powerful to control. It will be able to kill any small entity without any hassle. It will certainly become unfair to those small businesses that are running their operations in broadband, internet, and digital media field.
Reuters asked the representatives of both the companies and the Justice Department to talk about this meeting, but they denied saying anything about that. Speaking of a Bloomberg report, one of the spokesmen of Time Warner Cable said that the company was trying hard to resolve this matter with the government of the America including Federal Communications Commission and Justice Department. The Bloomberg report claimed that Justice Department Attorneys were against this deal and would try to come out with a decision in the favor of consumers.
