Comcast Needs to Get as Big as Possible: Klein

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Feb. 13 (Bloomberg) -- Comcast agreed to acquire Time Warner Cable for $45.2 billion, combining the two largest U.S. cable companies in an all-stock transaction. Former CNN President Jon Klein speaks on Bloomberg Television's "In The Loop." (Source: Bloomberg)

Delivery of content, internet, etc., whether you are in the cable delivery business, or you are a former phone company, verizon and at&t. all of these guys have to get as big as possible as fast as possible.

In the cable industry, this is close to a monopoly.

I do not know, but verizon and at&t, they are national networks.

The cable program is localized there that might be changing.

You suddenly have a company that has almost a national footprint, but they have to have that in order to compete against alternatives.

Google is developing fiber that delivers 100 times faster speeds than your cable or phone provider does.

That is a good point.

How quickly will the industry change?

How quickly will cable provider who cares?

Young people talk that way.

Anyone under 40. i talked to our 25-year-old producers, they do not have cable.

Qwest they do not feel they need it.

Less people will have it.

One thing everyone is talking about today is the idea of a monopoly.

What is not being talked about is the fact comcast investors will have a lot of tough questions.

You pointed out the loser here.

Is he really?

Contest is paying a big price.

Malone was going into this with a completely different philosophy on how to use cash.

He was going to take advantage of the chief debt market out there.

Comcast is using expensive stock.

Investors will have a real issue with this deal today.

That is one thing they will have to get over.

Forget about the sea.

We will talk wall street here and focus on what comcast and how comcast will message this deal to investors.

Just the other day, we had a chance to speak with a man who knows this well and what he thought about charter top possibly buying, warner.

Just buying time warner.

I remember saying 15 years ago we would one day get to a place in this country where there are two big phone companies and two big cable companies.

If he says it, i will not fight with him.

He is my boy.

Certainly, 131, below where the thing trades now, in what universe does that work?

That was john malone's approach.

What do you think?

I learned how to dress from parsons when he was my boss.

I took an oath there.

Regardless of how you pay for things, and what the financial structure is, these companies have to get as big as possible as that this possible in order to keep programming costs down, in order to create even more economy scale, marketing, back office systems.

All of that stuff.

Comcast had been a leader in driving charter interest.

Trying to match the economies to scale.

Comcast was achieving.

Now comcast has a bigger league.

My point is that it is a much bigger universe than just cable and growing.

As long as i can watch bloomberg tv.

Qwest bloomberg, cbs, it yes bn go to negotiate what they want, comcast can say, we own the

This text has been automatically generated. It may not be 100% accurate.


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