Monday, February 17, 2014

Comcast-Time Warner Merger May Violate Law

Some serious legal and public relations obstacles will have to be overcome before the $45.2 billion proposal from media giant Comcast to acquire Time Warner Cable will be able to materialize.

Our frequently misunderstood current antitrust laws are essentially an aggregate of statutes, which, in order to preserve and encourage fair competition for the benefit of consumers, were designed to oversee the organizational structure of U.S. corporations. The statutes that date back to the 19th Century seek to place limitations on the mergers and acquisitions of business entities and to put in place restrictions on various elements that could potentially lessen competition within the business arena.

Comcast recently made a move to quell antitrust concerns. The company announced that, if the merger should go through, it will drop approximately 3 million subscribers before taking aboard 8 million or so subscribers when the consolidation is complete. [more...]

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