Sorrell: Comcast Deal Puts Us in Better Position

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Feb. 13 (Bloomberg) - Martin Sorrell, CEO at WPP, examines the industry impact of the Comcast-Time Warner cable deal on Bloomberg Television’s “Bloomberg Surveillance.”

The roberts family has done, tell us about brian roberts, his father, and what they have dubbed over the decades at comcast to get to this point.

They have looked at it strategically, with a very strong vision.

They've made acquisitions on considerable scale.

The timing has been immaculate.

I think this may be another example of it.

This is looking at the industry overall.

In other words, holistically.

There are very few media magnets that think about it globally.

Rupert murdoch, please still the leading person in terms of looking at the industry: sickly -- holistically.

He looked at it as a whole.

I think brian roberts and father have looked at it very much in that way.

The apple tv box.

The fact is in china, the internet delivered mobile phone has a tv box that they tested and 200,000 homes.

U.k. are at -- about china.

Our viewers care about their cable bill.

Here is a meant column.

Susan crawford am a one of the great legal authorities on monopoly.

Here is susan crawford describing the consolidation of cable.

Both companies could do that are selling to multi location businesses.

Both companies could lower overhead and raise prices.

Both could charge content providers more for access to data and tv networks.

That is what the regulator will look at the extremely closely.

Depending on how you defined the market, a 70 five percent share under one definition, a third under another.

Breaking news.

It is now official comcast is buying time warner cable in an equity deal valued at 45 point two billion dollars.

Other details coming out, adding to free cash flow -- free cash flow.

Climbs 10 billion at closing.

We will quote but need to get the headlines.

I will go away from pr of brian roberts who i adore.

It will be very interesting to see what john malone says about it.

You are talking to fewer and fewer.

This is a fact of life.

I have 10 points we look at.

One of the point is consolidation.

There will be more consolidation amongst agencies.

There will be more consolidation amongst media.

As you look at this holistically , you have to integrate it.

The basic problem is gdp growth worldwide is a below trend.

People are focusing on cost and consolidation.

The idea of simple, simple.

Brian moynihan at bank of america talking about a simpler, narrow work framework is what we see this morning and media.

It certainly makes it easier for you to go to coca-cola global brand.

You say i want for you to create for me.

How does the consolidation change your ability to do that here go it leverages.

There is a duopoly developing.

If the number two and three companies merge, the two of us will be the strongest factors on the buy side.

What we will do is be it a better position to negotiate more effectively for our clients on an integrated basis worldwide . integrated, does that mean twitter, cable tv?

All of the above.

You argue about whether twitter is better or google.

It is meaningless really.

I do think google and amazon are the strongest factors.

What it is is looking at it in an integrated way.

This deal today is sort of a reflection of that.

Comcast is buying time warner cable 11 million managed subscribers and will divest 3 million subscribers in order to make the antitrust requirements.

If you look at a map of the customer base, it is interesting because it is very complementary but it takes water of the country that is not serviced at all by either time warner cable -- that is why it is white.

There are no people out there.

The companies are lining up and how they consolidate is one big part of the story.

You wonder what it means in terms of pricing power as well.

They have done the research and homework and are betting on the ability to sell the regulator divesting.

John malone, what does this mean for john malone.

They make great grandfather.

Not in russia.

It puts the pressure on malone.

You see it in europe as well.

Use the positioning between sky and liberty and vodafone and the companies that are starting to look at cable.

The thing that we see in america is very relevant.

This is so important with your british prism.

Do you perceive in washington cable is treated differently than telephone companies?

This transaction will raise that question.

I think there is something and what you say, a different role book.

This transaction will be different because it will raise the game to a totally different level.

So we have seen the announcement of the merger.

Scarlet fu will have the details.

We know there is a snowstorm in the u.s. erling towards new york.

There is political storm in italy.

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


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