In a statement, Comcast CEO Brian L. Roberts accepted defeat, saying, “Today, we move on. Of course, we would have liked to bring our great products to new cities, but we structured this deal so that if the government didn’t agree, we could walk away.”
That proved to be a prescient move for the cable behemoth, as regulators did indeed decide that the deal would make Comcast too big and give them too much leverage in an already uncompetitive market.
Roberts also thanked Comcast and Time Warner Cable employees for their hard work on the ultimately-failed merger, and added, “I couldn’t be more proud of this company and I am truly excited for what’s next.”
Rumors swirled earlier this week that Comcast might walk away from the acquisition after sources inside both the Justice Department and the FCC told press that Comcast’s case wasn’t looking good. An objection from either agency would have been enough to stop the merger, as we explained yesterday. That both agencies objected, and could not agree with Comcast on conditions that would make the merger acceptable, means that Comcast would have had to spend an extraordinary amount of time and money publicly airing its dirty laundry to try to convince them otherwise — and would probably still have failed.
Consumers, content companies, and what few competitors exist are now spared from Comcast getting even larger. But Time Warner Cable remains an attractive acquisition target: Charter try again to purchase some or all of the cable company, which still has attractive footholds in New York and L.A. And Comcast won’t want to sit idle; they’ve got $45 billion burning a hole in their pocket and will want to spend it on something.
But for now, for today at least, Comcast and TWC can now join AT&T and T-Mobile in the “too bad, so sad” failed-merger afterparty room while the rest of us take a quick sigh of relief.
by Kate Cox via Consumerist
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