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Comcast reportedly abandons acquisition of Time Warner Cable

Comcast reportedly abandons acquisition of Time Warner Cable

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Comcast is calling off its $45 billion dollar attempt to buy fellow cable provider Time Warner Cable, according to Bloomberg. The decision comes after recent reports that both the US Department of Justice and Federal Communications Commission were preparing to turn against the deal after months spent looking into what it would mean for competition in the cable industry. Apparently Comcast saw the writing on the wall with the increased scrutiny from regulators and has walked away from a merger that would have combined the top two cable operators in the United States. An official announcement that the deal is canceled could come as early as tomorrow, per Bloomberg's sources.

Both companies formally revealed their plans to merge last February; shareholders from Time Warner Cable and Comcast signed off on the idea in October. But the huge hurdle of regulatory approval remained. For over a year, Comcast has publicly campaigned in favor of the deal. Arguments against the two pairing up have been far louder and more persistent, however, with critics warning that a combined Comcast and Time Warner Cable would control 40 percent of the US broadband market and also lay claim to a significant hold in cable marketshare. Public opinion toward the deal has skewed largely negative since the start, and it would appear that FCC and Justice Department regulators ultimately joined consumers in that sentiment. The takeover is no more, and Comcast and Time Warner Cable will remain separate companies.

Verge Video: Comcast's argument for buying Time Warner Cable (2014)