It has been over a year since Comcast announced its intention to acquire Time Warner Cable for $45 billion. The announcement gave rise to serious concerns about competition in the cable business and many believed that federal regulators wouldn’t allow this merger to go through easily. A new report published today claims that Comcast has decided to back away from its plan to acquire Time Warner Cable.
Recently it was reported that regulators were likely to be against this deal after they spent a considerable amount of time studying what this merger might mean for competition in the cable industry.
The Federal Communications Commission was believed to be sending this matter to the same pit it sent AT&T’s T-Mobile acquisition bid in 2011 and EchoStar’s bid for DirecTV in 2002, a legal maze which forces companies to give up their bids.
Bloomberg reports today that it has become clear to Comcast that regulators will not allow this to go through which is why it has decided to walk away. According to the scribe’s sources an official announcement could be made tomorrow.
It was back in February last year when it was first announced that Comcast and Time Warner Cable were looking to merge. Shareholders from both companies approved this plan in October 2014 but the biggest hurdle was dealing with regulators, who just might have successfully blocked this from happening.
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