Comcast-Time Warner Merger Decision Delayed in NY
Seems like mergers are hard nowadays -- especially between behemoths. Comcast's attempt to acquire Time Warner Cable has been delayed as New York regulators announced Monday that they would delay their verdict on the acquisition by over one month.
New York, part of a handful of states expressing concerns about the consolidation of the top two cable-TV providers in the Unite States, is the first state to state it will take longer than the previously-mentioned Oct. 2 deadline. The state's Public Service Commission (PSC) says it will now deliver its judgment on the deal Nov. 13, according to a Sept. 26 filing between the commission and Comcast. The PSC can reject the merger, putting a major dent in Comcast and Time Warner's plans.
"Given the depth and breadth of the public record and the importance of the issues presented, the commission has accepted the extension of the period for review," PSC spokesperson James Denn said in an e-mail to Bloomberg.
Comcast's $45 billion bid is of paramount importance in New York. As the third-most populated state in the United States, the state holds around 2.2 million cable customers. The PSC has received almost 3,000 public statements on the merger, which the agency claims is "one of the most active proceedings in the commission's history."
Federal lawmakers, who are ultimately responsible for allowing the transaction to go through, have stated they will begin the formal review process in October.
New York has been particularly vocal about its skepticism about the Comcast-Time Warner deal. Gov. Andrew Cuomo stated that he would give the ordeal a "hands-on review" from the start, and advocacy group Common Cause NY has also questioned whether the merger would benefit customers.
"A greatly enlarged, post-merger entity will have even more difficulty and less incentive to provide acceptable customer service," said Susan Lerner from Common Cause New York, in a complaint against the merger.
One of the main points of debate is whether or not a new Comcast-Time Warner company would have enough incentive to properly expand and not just continue to cater to its bread and butter audience. Even the FCC has come out on the matter, stating that competition is paramount to reaching the broadband goal of 25 Mbps that every American should have access to.
New York isn't the only state concerned with the Comcast-Time Warner merger. California, the largest state, also jumped in the discussion, with its public utilities commission forming its own review board to ascertain the fallout from such a deal going down, although the state hasn't said it needs more time.
Comcast doesn't seem to be fazed, however, responding to FCC Chairman Tom Wheeler's remarks on the future of broadband by stating that the Cocmast-Time Warner merger won't bring about the dreaded fallout of consolidation and less market compeitition.
"To be clear, whether you are satisfied with the robust state of broadband competition today or deeply troubled by an absence of broadband competition, our transaction will simply not have a negative impact on the current competitive state of the broadband market in America today," Comcast executive vice president and Chief Diversity Officer David Cohen said.
For more stories like this, follow us on Twitter!
Subscribe to Latin Post!
Sign up for our free newsletter for the Latest coverage!