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He's also confident the deal will close

While some remain unsure of what Comcast's acquisition of Time Warner Cable (TWC) will mean for the industry, TWC's CEO has no doubt the deal between both companies is a "dream combination."

According to Variety, TWC CEO Rob Marcus said the merger will mean increased innovation and efficiency in the cable industry. 

“Look, I have every confidence that this deal is going to close. The logic of the deal is so compelling. I really don’t see anything undermining that,” said Marcus. 

Not everyone shares that same point-of-view. Some worry that the merger will result in reduced competition, poor customer service, less innovation and higher prices for customers. 

These worries stem from analyst predictions that Comcast and TWC's combined company would control about one-third of the U.S. broadband market. 

But Marcus dismissed the negatives, saying that Comcast and TWC don't directly compete in any markets -- hence, competition would remain unchanged. He also defended the merger from accusations that customers would pay more in the end.

“I find that whole line to be totally ironic given the experience we’ve all had over the last dozen years, where (programming) costs have risen faster than the cost customers will bear," said Marcus. 

TWC is raising prices on its own before the Comcast acquisition, saying it's offering more "customer friendly" cost increases by upping their bills once a year instead of as much as three times per year.

Comcast confirmed its acquisition of TWC for $45.2 billion USD in mid-February. It's set to be an all-stock transaction. 
 
The deal, which should be completed by the end of 2014 (after approval by stockholders and regulators, of course), will give TWC investors 2.875 Comcast stock for each of their shares. TWC shares are valued at $158.82 a piece.
 
TWC shareholders will own about 23 percent of Comcast’s common stock, and the press release said Comcast plans to buy back an additional $10 billion of its shares. 
 
The deal will up Comcast’s free cash flow per share and produce savings of about $1.5 billion. The overall acquisition values TWC at at about $69 billion including net debt.

It was revealed yesterday that Comcast used its political action committee to pay millions of dollars in lobbying, which paid many lawmakers responsible for overseeing the acquisition. The company even made donations to charities in an effort to put itself in a favorable light.

Comcast reportedly gave 15 of the 18 members of the Senate Judiciary Committee as well as 32 of the 39 members of the House Judiciary Committee some type of compensation or donation. Both committees are due to partake in hearings regarding the Comcast deal. 

 

Source: Variety



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When has this worked for any customer?
By dgingerich on 3/12/2014 2:52:54 PM , Rating: 5
I'm curious. When in history has a deal like this, where two dominating companies in a market merge to create one that consumes more than half the market, worked out for increasing innovation and better service for the customer. I haven't been able to think of one. I have only been able to find cases where it decreased innovation and degraded the service customers received. Does this guy know of something I don't?




RE: When has this worked for any customer?
By nshoe on 3/12/2014 3:36:28 PM , Rating: 2
Actually, I would find it difficult to find a deal quite like this - where two companies who are in the same business but are not actually competitors wanting to merge.


RE: When has this worked for any customer?
By itzmec on 3/12/2014 4:16:11 PM , Rating: 2
true, I wonder, did twc and Comcast share any markets before this? I know a few years ago there were two competing cable companies in Roanoke va, cox cable and I forgot the other.

and there is much reason to remain, or at least start being innovative. twc and Comcast's main competition is Verizon, at&t, frontier etc.,


By Jeffk464 on 3/13/2014 1:50:16 PM , Rating: 2
Hopefully Google will step up their Gigabit internet roll out. They are the only ones left who can possibly save net neutrality.


By NellyFromMA on 3/12/2014 4:30:20 PM , Rating: 4
Indeed. It's funny as this point indirectly highlights the anti-competitive nature of the sector as a whole.


RE: When has this worked for any customer?
By michael67 on 3/12/2014 3:56:39 PM , Rating: 5
quote:
Does this guy know of something I don't?

Depending how smart you are, you will properly know that innovation is there last concern's, and that this should have bin his quote!
quote:
Time Warner Cable CEO Says Merger with Comcast is a "Dream Combination", Will Increase the bottom line!

And that this has noting to do with greasing the weels to push a iffy deal true.
quote:
It was revealed yesterday that Comcast used its political action committee to pay millions of dollars in lobbying, which paid many lawmakers responsible for overseeing the acquisition. The company even made donations to charities in an effort to put itself in a favorable light.

If i bribe a public servant i go to jail if the cache me doing it, these guys do it in the open, and get away whit it, and the representatives that get bribed, people still vote for them. o_0


RE: When has this worked for any customer?
By jdietz on 3/12/2014 5:45:52 PM , Rating: 2
People are idiots. :(
Nothing you can do.


By Jeffk464 on 3/13/2014 1:54:23 PM , Rating: 2
There is one thing I can and that's switch to my local DSL company.


By sorry dog on 3/12/2014 4:06:28 PM , Rating: 3
If the justice dept doesn't block this then it will become a great case study of the influence of "donation" to policy implementations.
The reason why is the Justice Department has had a somewhat formalized criteria for screening which mergers to scrutinize based on the HHI or Herfindahl index. http://en.wikipedia.org/wiki/Herfindahl_index

I think it's quite clear that when evaluated as cable MSO companies, this merger will significantly increase the concentration of the market and probably lead the market to scoring above the magic .25 number where the department is supposed to get involved.

The only possible argument I can see against this is if the "market" includes not only MSO's but also ATT, wireless providers, and Sat providers.

It's also worth noting that this will not only affect end consumers but suppliers such at set top box makers. In the short-term, box makers will be at the complete mercy of this giant as well as others like amplifier makers and coax cable suppliers.


By retrospooty on 3/12/2014 4:32:07 PM , Rating: 2
"When in history has a deal like this, where two dominating companies in a market merge to create one that consumes more than half the market, worked out for increasing innovation and better service for the customer"

Not to point out the obvious, but the "innovation" will surely be designed to make them more money at the customer's expense.


By kaesden on 3/12/2014 5:45:28 PM , Rating: 2
Yeah, he probably knows how much of a big fat bonus he will receive if he can get this deal pushed through. @#$% time warner, @#$% comcast. Give me google fiber thank you very much.


By BifurcatedBoat on 3/12/2014 6:33:51 PM , Rating: 5
It probably will increase innovation.

"We will find ever more creative ways to gouge our customers beyond what they ever dreamed possible."


By danjw1 on 3/12/2014 7:06:51 PM , Rating: 2
I read that the issue that regulators would likely use against this is for their upstream (media companies) not downstream(consumers) will be harmed by this.

Well that and the fact that Comcast often goes back on promises made to regulators.


By Jeffk464 on 3/13/2014 1:47:02 PM , Rating: 2
Oh sure, cable companies are going out of their way to block innovation. The future should be one fiber-optic pipeline to your house with net neutrality in place. Once that's in place a ton of high quality streaming services like netflix, hulu, amazon, etc, compete to provide the ultimate service. Comcast is absolutely the biggest hurdle preventing this from happening.


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