Tom Toggas examines the merger between Comcast and Time Warner that is currently under review.

1. Comcast’s
Acquisition
of Time
Warner
Remains
Uncertain
By
Tom Toggas

2. According to David Gelles and
Emily Steel from the New York
Times, Comcast’s acquisition, which
was first announced more than one
year ago, is far from inevitable. The
proposed $45 billion merger would
bring together the United State’s
biggest cable companies.
For much of the last year, many
believed the deal would certainly
come to fruition at some point.
However, with the FCC’s new
stringent proposal about internet
governance, the merger could be in
jeopardy.

3. Although the executive VP of
Comcast, David Cohen, has
reaffirmed that he is confident the
merger will go through, advisors for
both parties involved have noted
that the deal is far from complete.
Government officials from both the
Federal Communications Commission
and the Justice Department are
examining all the data as they
decide whether to approve the
merger, and the concessions that
these companies must offer in
order to meet antitrust regulation.
This examination is ongoing even as
both companies are figuring out the
small details of the deal.

4. One of the central issues that are
under review by officials relates to
whether these two companies would
hold too much power over internet
traffic, and how much Americans
pay for access to the web.
If the merger did go through, the
resulting company would have
control of more than one third the
broadband internet service and just
under one-third of TV subscribers.
Tom Wheeler, Chairman of the
Federal Communications Commission,
has stated that he would like to
regulate the internet like a utility.

5. If this becomes a reality, it would
provide the FCC with the power to
ensure net neutrality, namely that
broadband providers are unable to
charge certain companies for the
privilege of allowing sites to load
at a faster speed.
If the merger was not allowed, it
would certainly shake up the
industry. However, Comcast is
spending significant resources on
the deal and are acting as if they
are certain that the acquisition will
not be blocked.