Fourteen months after surprising many people in both the entertainment world and the business world with a $45.2 billion merger that would end up creating a new internet and cable giant, Comcast Corporation is planning on pulling out from its planned acquisition of Time Warner Cable In, Bloomberg, while citing a source close to the matter reported on Thursday.
According to Bloomberg, the decision marks a swift unraveling of a deal which had waited for more than a year now federal approval. Opposition from the Federal Communications Commission and the country’s Justice Department finally took shape last week, leaving officials from both Time Warner Cable and Comcast concluding that it will be impossible for the deal to pass muster.
Many analysts view the collapse of the deal as a major setback for Comcast’s Brian Roberts, who is the company’s Chief Executive, who will now be forced to start recalculations in the businesses of delivery of movies and television series to its customers as well as broadband internet.
According to Charter Communication’s John Malone, Comcast are faced with the task of regrouping so as to specifically focus on adding more internet subscribers and most importantly defending its pay-TV business. As for Time Warner Cable, they could work on pursuing other mergers with other companies.
An analyst at MoffettNathanson, Craig Moffet, said that, “It’s the end of one chapter but the beginning of another.”
“The pace of cable consolidation is likely to accelerate rather than decelerate. It’ll just be Charter rather than Comcast leading the charge.”