Comcast is set to pull out of a potential USD45.2 billion takeover of Time Warner Cable (TWC), according to reports from Bloomberg, citing people with knowledge of the matter. The move, which involves two of the country’s largest cable operators, has spawned opposition from the US Justice Department and Federal Communications Commission due to the potential threat to competition posed by the emergence of such a giant in the market. Comcast and TWC are expected to confirm the decision imminently.
As previously reported by TeleGeography’s CommsUpdate, in February 2014 Comcast agreed to buy TWC for USD45.2 billion in an all-stock transaction, following the dismissal of a ‘grossly inadequate’ USD37.3 billion offer from US cable operator Charter Communications one month earlier. John Malone, the chairman of Liberty Media Corp has hinted that Charter (backed by Malone), will try to acquire TWC outright if Comcast’s pending merger with TWC falls through.