It’s official: The Comcast-Time Warner deal is dead. Comcast announced Friday it was walking away from the controversial deal to avoid a regulatory hearing and further public scrutiny.
Signs the deal was in trouble surfaced earlier this week after a Wall Street Journal report cited the Federal Communications Commission was moving to block the $45 billion merger by subjected it to a hearing. The hearing designation order would have put Comcast and Time Warner’s fate with an administrative law judge — an indication the FCC didn’t think the merger, or others on the same scale, was a good idea.
The Comcast-Time Warner merger was the biggest media mergers sought for federal regulator approval in recent years, and if approved, would have given the companies control of upwards of 55 percent of the nation’s broadband internet and 30 percent of TV subscribers. Coupled with massive political clout, that potential stronghold made everyone, the public especially, nervous.
The Justice Department was even preparing to launch an antitrust lawsuit against the merger had Comcast stayed the course. Attorney General Eric Holder hadn’t made a final decision but outlined concerns the deal would limit competition in the cable industry and give Comcast too much of a stake.
Media mergers are not new, but they tend to make customers uneasy because they limit their options for cable, internet or phone providers. Analysts warn that such partnerships create more hostile market conditions that only include a few major players, making it increasingly difficult for consumers to find services at affordable prices. Despite public worry, consolidation of media companies has risen in recent years, spiking in 2014 such as with acquisitions like messaging service WhatsApp by Facebook.
But the demise of the much-hated Comcast-Time Warner merger only offers the public a temporary reprieve. Here are some of potential big-name mergers on the horizon:
AT&T; and DirecTV. The $48.5 billion deal between the wireless and satellite cable companies was announced last year and is still on the table. Despite the FCC postponing review of the deal last year, the wireless company is moving forward with the deal, and has been cashing $17.5 billion in bonds to acquire DirecTV. The deal is expected to be approved this year and would expand AT&T;’s broadband and video capabilities.
Verizon and AOL. Verizon informally offered to buy AOL earlier this year to boost its advertising capabilities. Verizon insists the two companies are only in talks, and nothing serious has been proposed. But if the companies mad it official, Verizon would get AOL’s 2 million plus paid dial-up internet subscribers and several online media outlets that grab 200 million unique visitors month. Since closing its failed tech news site, Verizon has been looking to penetrate online content, advertising and mobile video areas.
Time Warner and Charter Communications. Now that Comcast is out of the picture, St. Louis, Missouri-based Charter Communications is eyeing a potential merger with Time Warner. Charter Communications previously said it would pounce on the chance to merge with Time Warner if the deal with Comcast fell through. Charter, which has customers in almost 30 states, also agreed to purchase Bright House Networks, a $10 billion cable company based in Syracuse, New York with two million subscribers from Florida to California. Should both deals get approved, could inch it closer to Comcast’s behemoth status.