Comcast-TWC Deal: What Regulatory Hurdles Await?

REPLAY VIDEO
Your next video will start in
Pause
  • Info

  • Comments

  • VIDEO TEXT

Feb. 13 (Bloomberg) -- Bloomberg chief Washington correspondent Peter Cook examines the potential regulatory problems standing in the way of Comcast’s $45.2 billion deal to acquire Time Warner Cable on Bloomberg Television’s “In The Loop.”

D.c., even though i know everyone is holed up in their houses and afraid of the snow?

The government shutdown, we do not have an official reaction at this point, but any time you combine number one or number two in anything in this country, washington will be initially skeptical.

The deal will have to be scrutinized on a variety of fronts.

It is not just cable versus cable.

It involves a lot more players and what it means in terms of program costs and the flow of information on the internet.

The fcc will ultimately decide if this is in the public interest.

We are a long way from done and it is not clear initially exactly where the government might be.

The pros, they do not compete in the same market.

A larger company could leverage its size to reduce or limit cost.

There are possible efficiencies here for businesses.

The cons are that they will be big, really big.

How will they really push in the pricing front given that.

One thing to remember is this company has friends in high places.

There was a top high comcast executive at that dinner here.

So you think there was a conversation had.

Do they need to do anything to sweeten the deal and make the government like it?

Or do you think it is fully baked?

They have to sweeten the deal.

They even said so in their statement released with the news of this transaction.

They will, at a minimum, offer to invest at least 3 million cable subscribers they would be getting from charter.

I would keep them below the 30% threshold in terms of cable eyeballs, 30 million customers there.

They might have to go further and they might have to again commit to maintain net neutrality.

It is something they committed to as part of their deal.

There have been legal rulings against the government and that front.

That is complicated, but it is one of the chips they could use and one bargaining point they could make.

In the alphabet soup of regulatory acronyms, what are key letters we should look out for here?

Doj and sec, i would really watch the key regulatory player here, the new fcc chairman, tom wheeler.

He has already brought in the folks from sprint and softbank to express concerns about that possible combination in wireless and he is also talked a lot about competition and his

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

Advertisement

BTV Channel Finder

Channel_finder_loader

ZIP is required for U.S. locations

Bloomberg Television in   change