Antitrust Law Daily Wrap Up, ACQUISTIONS & MERGERS NEWS: Franken opposes Comcast-Time Warner merger; mayors, governors urge approval, (Aug 26, 2014)
Organizations Mentioned:Charter Communications | Comcast | Comcast Corporation | Time Warner Cable, Inc.
By Lynn Stanton,TRDaily
Senator Al Franken (D., Minn.) has urged the FCC to reject Comcast Corp.’s proposed acquisition of Time Warner Cable, Inc., calling it “inimical” to the public interest, while the Democratic Governors Association and the mayors of more than 50 cities argued that the transaction offers many benefits to their communities.
These elected officials were among many parties responding to applications filed by Comcast Corp., Time Warner Cable, Inc., and Charter Communications, Inc., for approval of transfers of control of licenses related to the proposed Comcast-TWC merger and to the proposed sale, exchange, and spinoff transactions that would lead to a net reduction of about 3.9 million residential video subscribers for the combined Comcast-TWC. Comments and oppositions were due yesterday.
Franken said that the proposed transaction “would position Comcast as a veritable gatekeeper over vast swaths of the nation's telecommunications industry, resulting in higher prices, fewer choices, and worse service for consumers in Minnesota and across the country. The proposed acquisition also would threaten innovation and economic activity on the Internet, and it would jeopardize the free flow of information and ideas on which our democracy depends.”
The Democratic Governors Association said, “Comcast’s record of infrastructure innovation helps residents and businesses meet the constantly evolving challenges of the 21st century. The company has invested billions in technology improvements over the last 20 years.” It added, “Comcast’s Internet Essentials program closes the gap in access between rich and poor by offering affordable Internet and computer literacy partnerships to families across the country. Comcast has played a pivotal role in rebuilding the middle class by providing more Americans the resources they need to start a business, connect with medical advice and services, or simply turn in their homework and keep moving towards higher education.”
The mayors of Philadelphia; Austin, Texas; Miami and Orlando, Fla.; Denver; Buffalo, N.Y.; Anaheim, Calif.; Albuquerque, N.M.; Birmingham, Ala.; and other cities and towns across the country said, “We understand the Commission must weigh a number of factors when considering this type of transaction, and we do not take a position on them all. However, from our perspective, the increased investment, improved services, and community commitments that Comcast and Time Warner Cable have made all weigh heavily in favor of the proposed transaction.”
News: AcquisitionsMergers Antitrust