20 April 2015

Good News Everyone!!!

Good news everyone!

I invented a device that makes you read this in your head using my voice!
It appears that the DoJ's antitrust division will oppose the Comcast-Time Warner Merger:
Staff attorneys at the U.S. Justice Department’s antitrust division are nearing a recommendation to block Comcast Corp.’s bid to buy Time Warner Cable Inc., according to people familiar with the matter.

Attorneys who are investigating Comcast’s $45.2 billion proposal to create a nationwide cable giant are leaning against the merger out of concern that consumers would be harmed and could submit their review as soon as next week, said the people. The division’s senior officials will then decide whether to file a federal lawsuit seeking to block the tie-up.
Even better, it appears that this opposition could have the effect of preventing other mergers in the industry:

A rejection would be a blow to Comcast, which would have to give up on valuable cable and broadband assets in major U.S. cities including New York and Los Angeles. The $45.2 billion merger proposal is also a way for Philadelphia-based Comcast to fend off competition from phone companies, satellite providers and Web services like Netflix Inc. that have taken hundreds of thousands of its TV subscribers in recent years.

Another company has a lot at stake: Charter Communications Inc., the No. 4 in the industry. Charter, which counts billionaire John Malone as its largest investor, has agreed to take control of 3.9 million Comcast cable-TV customers to ease approval for the Comcast-Time Warner Cable merger. If that fails, Charter won’t get those customers. Another Charter deal, the recent agreement to purchase of Bright House Networks, would also be in jeopardy.
The most amazing thing about this is that the push-back seems to come primarily from consumers, driven largely by both Comcast and TW Cable, and the belief that if they are allowed to merge, the suckitude will get only worse.

Remarkably, this is the second time that adverse regulation against cable companies has resulted in a consumer backlash.

The Cable Television Consumer Protection and Competition Act of 1992 was vociferously opposed by the cable companies, and they plastered their programming with advertising against it.

Once alerted, cable users bombarded Congress with calls and letters supporting the bill, because they figured that if their cable company was against the 1992 Cable Act, they were for it.


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