Unlike its earlier claims, Comcast Corporation (NASDAQ:CMCSA) postponed its acquisition period target for Time Warner Cable Inc (NYSE:TWC) to early 2015. According to the company, this extended delay is to accommodate time required for regulatory approvals. Comcast Corporation (NASDAQ:CMCSA) received notice from the federal regulators concerning its content and Internet policies for the review of its $45.2 billion bid for Time Warner Cable Inc (NYSE:TWC).
According to the a letter issued by the Federal Communications Commission concerning the matter, the FCC asked Comcast to provide information about its business practices including Internet traffic management, sports league programming agreements, and customer data caps. It is much like mandatory agency reviews before acquisition. The data will raise questions imposed by several competitors, consumer groups, and individual consumers.
Some consumer groups including Consumers Union and Common Cause have requested the agency to stop the deal, which might give excessive power to Comcast in terms of package prices and available choices. Comcast Corporation (NASDAQ:CMCSA) has its share of supporters too including politicians and organizations receiving donations from the company. These groups have urged FCC to allow the deal considering the impressive service network of the company and their contribution towards strengthening the national infrastructure.
Upon the completion of this deal, Comcast Corporation (NASDAQ:CMCSA) will have 29 million customers including 7 million customers of Time Warner Cable Inc (NYSE:TWC). With an increase in broadband-based subscribers, the company is looking forward to a bright future. The company added 203,000 broadband subscribers followed by the Time Warner Cable Inc (NYSE:TWC) with 86,000 subscribers. After the merger, Comcast would have nearly 28 million broadband subscribers and it will save nearly $1.5 billion in yearly operating costs.
This article has been written by Prakash Pandey.
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