Count backend business services provider CSG International among those who are pleased that the $45 billion merger between Comcast (NASDAQ: CMCSA) and Time Warner Cable (NYSE: TWC) didn't occur.
In an SEC filing tied to the company's first-quarter earnings report, the company revealed that a successful combination of the top two cable companies would have cost it up to $20 million in annual billings, with its No. 1 customer, Comcast, controlling a powerful volume discount.
"The Time Warner and Charter customer accounts, currently being processed on our platform and acquired by Comcast, would have been entitled to more favorable volume pricing terms under our Comcast agreement," the filing reads. "The annual effect of this more favorable pricing was estimated to be between $15 and $20 million.
"As a result of this recent announcement to terminate the proposed transactions," the filing adds, "we no longer expect the originally anticipated material changes to our revenues from these transactions."
Other cable vendors have lauded Comcast's April 24 decision to walk away from the TWC deal, if for no other reason than it removed uncertainty from the marketplace and spurred orders that had been hold.
"We've seen overall spending levels down from prior periods primarily due to the distractions and uncertainties associated with industry dynamics," said Arris CEO Bob Stanzione, during his company's Q1 earnings call on April 29. "And certainly the news in the last few days may extend that uncertainty. However, we feel great about our position in the market. We're going through a period of change that is having what we feel is a temporary effect on our business and we feel confident that the underlying trends and our strong positioning bode well for the future."
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