Yet another group opposed to a merger between Comcast (NASDAQ: CMCSA) and Time Warner Cable (NYSE: TWC) emerged Monday, as investors begin to have serious concerns over the regulatory approval of the deal.
TWC's stock has dropped more than 10 percent since the end of 2014. As the Wall Street Journal notes, at $136.56 a share, TWC stock is trading at more than 10 percent below the value of Comcast's offer. This could impact investor will if the Federal Communications Commission or Departement of Justice were to demand stringent concessions.
"Concerns are mounting that the Federal Communications Commission or the Justice Department could block the merger outright or that the FCC could try to get major concessions out of Comcast to approve it. If it does the latter, some analysts think that Comcast might simply walk away," the Journal wrote.
Meanwhile, the deal continues to gather head wind.
Representatives from technology industry umbrella groups industry umbrella groups Comptel, ITTA (The Independent Telephone & Telecommunications Alliance) and NTCA–The Rural Broadband Association held a Washington, D.C., press conference to launch a new anti-merger campaign, catch-phrased "Don't Comcast the Internet."
"As the Federal Communications Commission and Department of Justice continue to review the proposed merger, this campaign will mobilize business and other voices to urge these agencies to deny the transaction and prevent the serious harms it poses to competition, innovation and consumer choice," read a release sent to press Monday morning.
At this point, with "Stop Mega Comcast" and countless other companies and nonprofits sending letters to the FCC voicing unease about the corporate union, the noise level is high.
"There's no real news here--just another group of existing opponents making the same arguments they have already made at the FCC for months, many of which weren't found to be credible in our past transaction reviews, and all of which we've refuted directly with evidence in the FCC record," reads a Comcast statement. "The real facts remain the same: consumers don't lose choice in the broadband or video markets. Consumers will see real benefits in faster broadband speeds and better video products, and a host of other benefits. And there are no transaction-specific harms to this merger."
For more:
- read this story from The Hill
- read this GigaOm story
- read this Wall Street Journal story
Related links:
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