Justice Department may block Comcast’s bid to buy Time Warner Cable, The Justice Department’s antitrust division might hinder Comcast effort to buy Time Warner Cable, according to a recent report. The FederalReserve concerned that the merger agreement would harm consumers. According to a report, New York and Los Angeles are two citiesamong the other cities that will provide valuable assets to Comcast if the deal happen.
Comcast, a media company based in Philadelphia,noticed that the value of its shares fell along with the decline in the value of shares owned by TWC. According to Sena Fitzmaurice, there is no legal basis could be justified to cancel the merger.
The antitrust division is going to submit its review next week, according to Bloomberg. But the final decision will fall to the unit’s senior-most staff.
Comcast has the most at stake in the proposed deal — which would give the cable company a presence in major U.S. markets, Bloomberg noted.
New York and Los Angeles would be among the cities giving Comcast valuable cable assets if it merged with Time Warner Cable (NYSE: TWC) down 5.43 percent or $8.59 to $ 149.61, the news outlet said.
The combined cable clout would also give Comcast (NASDAQ: CMCSA) down 2.09 percent or $1.25 to 58.42 an important edge in its broadband Internet and video footprints, Bloomberg said.
That market has been invaded by other companies that use satellites, web and telecommunications to siphon off TV viewers, Bloomberg noted.
Comcast, based in Philadelphia, saw its shares fall 2.4 percent to $58.26 Friday afternoon, while Time Warner Cable fell 4.9 percent to $150.41, the wire service said.
According to its sources, DOJ antitrust lawyers have been scrutinizing whether the merged company would shut out competition for video streaming services.
That could mean an unfair advantage for Comcast and Time Warner Cable over competitors like Netflix Inc., and Sling TV.
Comcast has been trying to get a go-ahead for its merger from the DOJ and the Federal Communications Commission since the deal was proposed in 2014. The company told Bloomberg it was confident in its plans.
“There is no basis for a lawsuit to block the transaction,” said Comcast spokeswoman Sena Fitzmaurice.
The deal “will result in significant consumer benefits — faster broadband speeds, access to a superior video experience, and more competition in business services resulting in billions of dollars of cost savings,” she said.
The antitrust division is going to submit its review next week, according to Bloomberg. But the final decision will fall to the unit’s senior-most staff.
Comcast has the most at stake in the proposed deal — which would give the cable company a presence in major U.S. markets, Bloomberg noted.
New York and Los Angeles would be among the cities giving Comcast valuable cable assets if it merged with Time Warner Cable (NYSE: TWC) down 5.43 percent or $8.59 to $ 149.61, the news outlet said.
The combined cable clout would also give Comcast (NASDAQ: CMCSA) down 2.09 percent or $1.25 to 58.42 an important edge in its broadband Internet and video footprints, Bloomberg said.
That market has been invaded by other companies that use satellites, web and telecommunications to siphon off TV viewers, Bloomberg noted.
Comcast, based in Philadelphia, saw its shares fall 2.4 percent to $58.26 Friday afternoon, while Time Warner Cable fell 4.9 percent to $150.41, the wire service said.
According to its sources, DOJ antitrust lawyers have been scrutinizing whether the merged company would shut out competition for video streaming services.
That could mean an unfair advantage for Comcast and Time Warner Cable over competitors like Netflix Inc., and Sling TV.
Comcast has been trying to get a go-ahead for its merger from the DOJ and the Federal Communications Commission since the deal was proposed in 2014. The company told Bloomberg it was confident in its plans.
“There is no basis for a lawsuit to block the transaction,” said Comcast spokeswoman Sena Fitzmaurice.
The deal “will result in significant consumer benefits — faster broadband speeds, access to a superior video experience, and more competition in business services resulting in billions of dollars of cost savings,” she said.
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