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
RE: When has this worked for any customer?
3/12/2014 4:32:07 PM
"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.
"And boy have we patented it!" -- Steve Jobs, Macworld 2007
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
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
ISIS JIhadi From NZ Accidentally Shares Location on Twitter, Outs Cohorts in Selfie
January 3, 2015, 11:35 PM
Amazon's Kindle Fire HDX 8.9 Drops to $299 (30 Percent Off) for a Day
December 22, 2014, 10:57 AM
Most Popular Articles
Microsoft Shows Off Latest Windows 10 Build, Preps it for Next Week Release
January 21, 2015, 2:57 PM
IDC: 2014 Sales Show PC Isn't Dead, But Desktop May be Dying
January 19, 2015, 1:50 PM
Police are Using New Handheld Radar Sensors to Peer Into Houses w/out Warrant
January 20, 2015, 1:35 PM
Great Expectations: The Rise and Fall of Google Glass Explorer Edition
January 16, 2015, 1:14 AM
Report: HTC One M9 (2015) is Tied to Under Armour-Powered HTC Smartwatch
January 19, 2015, 11:10 AM
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