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
3/13/2014 10:31:34 AM
Uh, he said they don't compete. My comment said that he said they don't compete. He was specifically pointing out there is no other industry where the #1 and #2 companies don't compete.
And, "that clown" seems to be the only one standing in the way of the Comcast buyout of TWC.
BTW, that "failed radio-turned-political hack decision" won him a U.S. Senate seat. So, I am guessing "that clown" is more successful and powerful than you are.
"So, I think the same thing of the music industry. They can't say that they're losing money, you know what I'm saying. They just probably don't have the same surplus that they had." -- Wu-Tang Clan founder RZA
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
Microsoft "Welcomes Developers" to Its New "Edge Browser" (Codename: Spartan)
April 29, 2015, 7:25 PM
Tech's Biggest Loser on Tax Day: eBay Pays Nearly 99 Percent Tax Rate
April 15, 2015, 3:28 PM
Death and Dragons -- Report Claims Game of Thrones Hit by Piracy "Tidal Wave"
April 10, 2015, 8:37 AM
Court Blocks Twitter and YouTube in Turkey After Pro-Communist Attack in Istanbul
April 6, 2015, 10:53 AM
In Graphics and Quotes: $10.4 Billion Charter & Bright House Merger
April 2, 2015, 5:19 PM
WSJ Report Implies That Google Leveraged Lobbying to Kill Antitrust Abuse Probe
March 25, 2015, 5:37 PM
Most Popular Articles
Windows 10 Build 10061: A Quick Review
April 27, 2015, 10:57 AM
Ding Dong the Deal is Dead: What's Next After Failed Comcast/TWC Merger
April 28, 2015, 2:06 PM
Report: Apple Pulls the Plug on Apple Watch Store Launch
April 16, 2015, 3:18 PM
Quick Note: Lady Macbath -- One Japanese Woman's Apple Themed Revenge
April 23, 2015, 11:47 AM
After Record-Setting Week, Samsung Predicts 70 Million GS6/GS6 Edge Sales
April 17, 2015, 8:39 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