Time Warner Cable CEO Says Merger with Comcast is a "Dream Combination", Will Increase Innovation
March 12, 2014 2:37 PM
comment(s) - last by
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."
, 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.
This article is over a month old, voting and posting comments is disabled
I Agree...It Will Be Innovative...
3/12/2014 3:09:13 PM
They'll find innovative ways to give you less service for more money.
“So far we have not seen a single Android device that does not infringe on our patents." -- Microsoft General Counsel Brad Smith
Comcast Paying Millions to Congress to Solidify Time Warner Cable Acquisition
March 10, 2014, 8:25 PM
Confirmed: Comcast Acquires Time Warner Cable for $45.2 Billion
February 13, 2014, 10:51 AM
Dumb Twitter Controversy: Saudis Whine at Michelle Obama's Lack of Head Scarf
January 27, 2015, 4:57 PM
Google Fixes Homophobic "Bug" in its Translator
January 27, 2015, 2:31 PM
Chris Poole Retires From Role as 4Chan After a Decade of Success, Struggles
January 23, 2015, 1:45 PM
Study Shows People are Dumb as Ever With Passwords, Still Using "123456"
January 20, 2015, 3:19 PM
Site for "Glitter as a Service" Mail Pranks, ShipYourEnemiesGlitter, Launches
January 13, 2015, 2:22 PM
OS X Yosemite Compromises Security by Retrieving Embedded Email Images
January 13, 2015, 11:30 AM
Most Popular Articles
Under the Hood: How DirectX 11.3 and 12 Will Supercharge Windows 10 Gaming
January 23, 2015, 12:34 PM
Microsoft Shows Off Latest Windows 10 Build, Preps it for Next Week Release
January 21, 2015, 2:57 PM
BlackBerry CEO Claims Devs are Violating Net Neutrality by Not Supporting BB10
January 22, 2015, 4:37 PM
2016 Cadillac CTS-V Packs 640 hp Punch with 200 mph Reach
January 23, 2015, 3:25 PM
Will Google Become America's Fifth Major Carrier?
January 22, 2015, 12:42 PM
Latest Blog Posts
Sceptre Airs 27", 120 Hz. 1080p Monitor/HDTV w/ 5 ms Response Time for $220
Dec 3, 2014, 10:32 PM
Costco Gives Employees Thanksgiving Off; Wal-Mart Leads "Black Thursday" Charge
Oct 29, 2014, 9:57 PM
"Bear Selfies" Fad Could Turn Deadly, Warn Nevada Wildlife Officials
Oct 28, 2014, 12:00 PM
The Surface Mini That Was Never Released Gets "Hands On" Treatment
Sep 26, 2014, 8:22 AM
ISIS Imposes Ban on Teaching Evolution in Iraq
Sep 17, 2014, 5:22 PM
More Blog Posts
Copyright 2015 DailyTech LLC. -
Terms, Conditions & Privacy Information