Comcast & Time Warner Cable Merger: A Good Or Bad Deal?

By: LATF Staff Member
Random Commentary
April 22, 2015, 12:05 am

Back in February of 2014, Comcast and Time Warner Cable made a deal in which the two empires would merge for $45 billion. If the deal was approved, they would become the largest cable company in the U.S.

Over a year later and the two companies are now meeting with Justice Department officials to discuss the merger that could change internet service for good. The question is: will it be good or bad?

With Comcast being the #1 cable operator and Time Warner being #2, combining services wouldn’t leave many other options for cable customers. According to reports, Comcast now has nearly 22 million high-speed Internet customers. Com and TWC would serve about 30 million customers and control about 57% of the broadband market and 30% for paid TV, such as your cable packages.

The worry is that, together, these two cable wolves would become one big bad wolf that is just too powerful.

The two cable companies are saying that “Together is better.” They formally state that:

This transaction will create a world-class technology and media company, differentiated by its ability to deliver ground-breaking products on a superior network while leveraging a national platform to create operating efficiencies and economies of scale. The exciting, pro-consumer benefits of creating this new company are what led Time Warner Cable and Comcast to enter into discussions, and what led shareholders of both companies to encourage this combination. This transaction is, and will be determined to be, pro-consumer, pro-competitive, strongly in the public interest, and approvable.