The DOJ and Consumer Advocates Applaud Comcast's Decision to Walk Away From $45.2B Deal With Time Warner Cable
After facing major opposition and scrutiny, Comcast Corp. announced on Friday that it is ending its $45.2 billion merger agreement with Time Warner Cable.
"Today, we move on," Comcast CEO Brian Roberts said, according to USA Today. "Of course, we would have liked to bring our great products to new cities, but we structured this deal so that if the government didn't agree, we could walk away."
The media giant received major backlash from consumers in addition to opposition from federal antitrust regulators shortly after the deal was announced. Comcast also stated that it is no longer pursing a related transaction with Charter Communications.
According to Time Warner Cable, the decision was "mutual," and that the agreement did not include breakup fee.
"We have always believed that Time Warner Cable is a one-of-a-kind asset," said TWC CEO Robert Marcus, in a statement. "We are strong and getting stronger. Throughout this process, we've been laser focused on executing our operating plan and investing in our plant, products and people to deliver great experiences to our customers."
In the deal, Comcast planned to move 3.9 million of its TV customers to Charter Communications. However, consumers and advocacy groups launched massive campaigns online and in Washington, D.C., demanding regulators to stop the proposal, which they claim would have given one company a monopoly of power in pay-TV and Internet services.
"This is a major victory for consumers who stood up against a media Goliath and won, and a major victory for everyone who wants a fair and competitive marketplace," Marta Tellado, CEO of Consumer Reports, said in a statement. "Comcast never was able to make a convincing case for why the merger would benefit anyone other than Comcast."
Attorney General Eric Holder also applauded the company's decision as a victory for consumers.
"This is a victory not only for the Department of Justice, but also for providers of content and streaming services who work to bring innovative products to consumers across America and around the world," Holder said in a statement, reports CBS News.
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