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Analysts share thoughts on Comcast's effort to buy Time Warner Cable

By: Michael Hatamoto | Posted: Feb 13, 2014 5:56 pm

Following yesterday's announcement that Comcast plans to acquire Time Warner Cable in a $44.2 billion stock deal, it immediately sent tremors through the industry. Some customers have voiced displeasure to see Time Warner Cable swallowed up by Comcast, while others are a bit more receptive of a possible buyout.




As for whether or not the deal will be approved, Comcast has a few positive aspects working its direction:


"Considering the rise of OTT (over the top) services creating more instances of cord cutters, shavers and neverers, increased competition from IPTV and the eventual IPification of cable MSOs (multiple-system operator), this proposed merger might get approved by the feds," said Mukul Krishna, Frost & Sullivan Senior Global Director, in a press statement. "This is not necessarily going to create a monopoly since cable MSOs rarely compete against each other and have different territories."


There has been continued struggle in the current TV industry, with cable and satellite providers battling against "cord cutting" consumers turning to online video content.


"This is a huge deal in the world of cable television," said Jeff Kagan, industry analyst, in a press statement. "Cable TV has been going through a tough period losing customers to new competitors. This deal would have to win regulatory approval. That may not be easy, but is doable. Comcast does not compete with Time Warner Cable, so that is in their favor. It would just be a matter of selling off part of their customer base."


I am curious to see if the US government allows the deal to happen, though if Krishna is correct, then it's something that should receive regulatory approval.

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