The shareholders of Time Warner Cable have recently approved a potential deal of $ 45.2 billion with Comcast. This news came after a vote was cast in New York during a TWC investor’s meeting recently that came up with 99 percent of the voters approving the deal. The same support was duplicated with Comcast shareholders at a separate meeting held in Philadelphia as they approved the deal.
It is expected that in the deal, 2.875 shares of Comcast class A common stock, will be issued for every single share of common stock from Time Warner. However, this proposed deal between the two largest cable providers in the US is still subject to regulatory approval. This is regardless of the overwhelming support from the two companies.
FCC & Justice Dept. Yet To Finish Reviewing Time Warner/Comcast Deal
The FCC and the U.S. Justice Department are reviewing the deal although the FCC has put its review on hold until the 29th of this month. This is so as to collect additional responses for or against the Time Warner /Comcast deal. However, one the FCC resumes its review, it will have 180 days to scrutinize the merger and hopefully the deal will close by the end of this year.
Although some critics have misgivings about the deal, the two companies are hard at work convincing customers that the deal will be good for them. Comcast says on its website that the deal will result in faster internet speeds for consumers, and it will also provide a more secure network for them. They say it will provide net neutrality protection and a more reliable network as well. All this delivered on low-cost internet access.
There has been concern that the merger may eliminate customer choice as it reduces the number of players in the field, but the two companies insist that this is not the case. They claim that the merger will give them their customers a great option instead. We can only wait and see if the reality is as good as they say.