Over a year after it was first announced, Comcast’s mega-deal to buy rival Time Warner Cable might be dead. The $45.2 billion deal has come apart in recent days, as government opposition has been made clear.
Just last week, Bloomberg reported that antitrust lawyers at the Justice Department were going to recommend that top officials file a federal lawsuit to block the deal. Earlier today, Bloomberg reported that the Federal Communications Commission (FCC) told the companies that it was leaning towards opposing the deal and proposing a hearing.
With two government agencies standing in their way and a possible months-long FCC hearing imminent, Bloomberg reported this afternoon that Comcast is planning on withdrawing the bid. One of the site’s sources said that Comcast could formally announce its decision as soon as Friday.
Had the deal gone through, it would have been a merger of the country’s two biggest cable providers. The single entity would have made up a third of the market. Consumer advocacy groups were against the deal, but Comcast said that the deal would result in better service and savings for customers.
Comcast and TWC have not commented on Bloomberg’s report.
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image from Comcast.com