Comcast to buy Time Warner Cable for $44 Billion

MacNut

macrumors Core
Original poster
Jan 4, 2002
21,542
7,801
CT
Comcast will announce a deal to acquire Time Warner Cable in an all-stock deal worth more than $44 billion that will unite the biggest and second largest cable television operators in the country, according to people briefed on the matter. .

The surprise merger — expected to be announced on Thursday — is likely to bring to an end a protracted takeover battle that a smaller cable rival, Charter Communications, has been waging for Time Warner Cable, and will be the second major deal for Comcast in recent years to radically reshape the American media landscape.

Time Warner Cable shareholders will receive 2.875 shares of newly issued Comcast common stock for each of their shares. Based on Comcast’s closing price of $55.24 on Wednesday, that values each Time Warner Cable share at about $158.82 each.
http://dealbook.nytimes.com/2014/02/12/comcast-set-to-acquire-time-warner-cable/
The monster gets bigger.
 

citizenzen

macrumors 65816
Mar 22, 2010
1,433
11,628
This is interesting from an Apple perspective ... It was just in the news today that Apple was about to launch a new version of Apple TV, hinged partly on negotiations it was having with Time Warner.

I wonder how these new developments changes things.
 

SkyBell

macrumors 604
Sep 7, 2006
6,579
131
Texas, unfortunately.
Its so nice when the biggest companies in a particular market put aside their differences as rivals, and agree to combine forces so they can more easily drain their customers wallets.
 

MacNut

macrumors Core
Original poster
Jan 4, 2002
21,542
7,801
CT
(Comcast + TWC) - Net Neutrality = antitrust?

BL.
The 2 biggest cable companies merging I would hope would draw some concern but it probably won't. They will become the Bank of America of Cable. Suck up everything in site until there are no other options.
 

SoAnyway

macrumors 6502
May 10, 2011
476
179
So deregulation and agreeing not to compete in each other's area isn't enough that now they must merge?

Where's Google fiber?
 

Solomani

macrumors 68040
Sep 25, 2012
3,702
6,182
Alberto, Canado
The 2 biggest cable companies merging I would hope would draw some concern but it probably won't. They will become the Bank of America of Cable. Suck up everything in site until there are no other options.
If enough Americans actually wrote to their Congressmen to oppose the merger, then there would actually be huge anti-trust scrutiny before the merger can come through.

Many proposed mergers fail because of too much anti-trust scrutiny and pressure from the opposition. Remember the AT&T attempt to acquire T-Mobile?
 

rdowns

macrumors Penryn
Jul 11, 2003
27,345
12,408
Its so nice when the biggest companies in a particular market put aside their differences as rivals, and agree to combine forces so they can more easily drain their customers wallets.

Rivals? They don't compete in a single zip code. In most areas, you have no choice. If you're lucky, you have cable and FIOS or u-verse as a choice.
 

jbachandouris

macrumors 601
Aug 18, 2009
4,478
1,406
Upstate NY
Write your Congressman? Do you seriously think they care if we live or die? They could care less what we have to say.

Vote with my wallet? Where I live there's NO other option than TWC. No FIOS yet because Albany won't let them run fiber and apparently there's no other way to get to Rensselaer.

Between this news and the snow storm today, very unhappy.
 

LizKat

macrumors 603
Aug 5, 2004
5,316
29,777
Catskill Mountains
Wow. All the people screaming "socialism!!" over healthcare -- I will like to know from them what is the difference between state-owned television and TheOneBigCableCo.
 

edk99

macrumors 6502a
May 27, 2009
701
709
FL
If enough Americans actually wrote to their Congressmen to oppose the merger, then there would actually be huge anti-trust scrutiny before the merger can come through.

Many proposed mergers fail because of too much anti-trust scrutiny and pressure from the opposition. Remember the AT&T attempt to acquire T-Mobile?
The problem with what you are saying is that they don't compete against each other unlike ATT and T-Mobile whee they are fighting for the same customers.

In my area both are available but on my specific zip code or more specifically my street only one is available. I do have a U-Verse or Centurylink option and 2 satellite options and I currently use Directv. So there are choices. I'm a little more limited on internet service and I do have TW because my only other options would be ATT or Centurylink.

So I'm not sure there can be justified opposition to it other then the combining of the 2 largest cable operators into one.

The biggest thing I hate about the cable companies are for apartment dwellers that have no choice. In my area just about all apartment complexes have contracts with either TW or Comcast and that charge is included in rent even though you watch TV or not or prefer something else like satellite your SOL.
 

rdowns

macrumors Penryn
Jul 11, 2003
27,345
12,408
IMO, competition isn't the issue here as they don't actually compete for the same customer. The issue is controlling the pipes and the content.
 

bradl

macrumors 601
Jun 16, 2008
4,006
11,823
Google fiber is in Austin TX, Kansas City, and Provo UT.
IIRC, Google Fiber can't be provisioned out in Utah thanks to one of these two companies and their protest to Congress about it. I'll find the link for it when I get to work, but there was a decent upheaval about it mentioned in the press.

BL.
 

TheHateMachine

macrumors 6502a
Sep 18, 2012
836
849
The biggest thing I hate about the cable companies are for apartment dwellers that have no choice. In my area just about all apartment complexes have contracts with either TW or Comcast and that charge is included in rent even though you watch TV or not or prefer something else like satellite your SOL.
The apartment complexes like to make you think that those contracts are legit but they aren't. They were struck down by the FCC back in 2007.

You can get whoever you want, as for the charge that is included in your rent though you are truly SOL.

FCC bans residential contracts.

http://www.gtlaw.com/portalresource/lookup/wosid/contentpilot-core-401-7146/pdfCopy.name=/1200d.pdf?view=attachment

Appeal gets struck down.

http://arstechnica.com/tech-policy/2009/05/federal-court-upholds-fcc-ban-on-exclusive-cable-deals/

I cannot find the last article but the laws were changed to encompass broadband as well.
 

MacNut

macrumors Core
Original poster
Jan 4, 2002
21,542
7,801
CT
IMO, competition isn't the issue here as they don't actually compete for the same customer. The issue is controlling the pipes and the content.
This is the issue, if Comcast gains control of TWC they will own 1/3 of the countries cable infrastructure. That will give them a huge advantage in barging content deals and setting the price high.
Purchasing Time Warner would give Comcast roughly a third of the national cable market, raising concerns over whether the combined company would have too much leverage over content providers in negotiations. However, the deal may benefit from the perception of some regulators that cable is a natural monopoly whose primary competition comes from satellite providers and telephone companies like Verizon and AT&T. The FCC previously tried to impose a 30% horizontal ownership cap on the cable industry, but the D.C. Circuit Court of Appeals threw out that limit in 2009.
http://online.wsj.com/news/articles/SB10001424052702303704304579379801986541412?mg=reno64-wsj&url=http://online.wsj.com/article/SB10001424052702303704304579379801986541412.html
 

Sydde

macrumors 68020
Aug 17, 2009
2,104
2,162
IOKWARDI
Wow. All the people screaming "socialism!!" over healthcare -- I will like to know from them what is the difference between state-owned television and TheOneBigCableCo.
Socialism is kind of like when the government takes on services that could be handled by the private sector, this, the government looking the other way, is more akin to conspiring to establish plutocracy, or maybe a bit like fascism.
 

SoAnyway

macrumors 6502
May 10, 2011
476
179
Socialism is kind of like when the government takes on services that could be handled by the private sector, this, the government looking the other way, is more akin to conspiring to establish plutocracy, or maybe a bit like fascism.

Exactly. If things get worse, our media will be like North Korea's where it is "state approved". Only that it won't be state approved but "corporate approved".
 

hallux

macrumors 68030
Apr 25, 2012
2,774
485
Write your Congressman? Do you seriously think they care if we live or die? They could care less what we have to say.

Vote with my wallet? Where I live there's NO other option than TWC. No FIOS yet because Albany won't let them run fiber and apparently there's no other way to get to Rensselaer.

Between this news and the snow storm today, very unhappy.
Howdy neighbor! I'm just a bit North of you, similar situation regarding getting FIOS, the municipalities won't let them dig to bury the fiber and they won't run it on a pole.

The biggest thing I hate about the cable companies are for apartment dwellers that have no choice. In my area just about all apartment complexes have contracts with either TW or Comcast and that charge is included in rent even though you watch TV or not or prefer something else like satellite your SOL.
In my case, the apartment complex doesn't necessarily have a contract with the cable company. However, the complex won't let residents install a dish or make changes to internal wiring in the unit (3 rooms are pre-wired for cable, using a dish would require changes to wiring which they won't allow). Verizon doesn't offer DSL service in my zip code, probably too far from an office. My ONLY option for TV and internet is TWC but it's not a contract negotiated by the complex, I sign up for my own service and pay TWC for said service.

I just CAN'T see how this can be allowed to happen. It just does NOT look promising for keeping prices down. They have us by the dangly bits already, this can't be in an effort to LOWER prices! Comcast DOES offer packages in Saratoga (nearby city), so they DO compete in that market as my TWC service is technically through the Saratoga region.
 

rdowns

macrumors Penryn
Jul 11, 2003
27,345
12,408
Exactly. If things get worse, our media will be like North Korea's where it is "state approved". Only that it won't be state approved but "corporate approved".
Our media is and has been corporate approved for over a decade.

A bit outdated. Replace GE with Comcast.