The proposed $45 billion merger between Time Warner and Comcast was one of last year’s biggest deals. Following FCC pushback and inquiries made by the Justice Department, Comcast has now pulled the plug on the pact in anticipation of the inevitable legal process that could have been a death sentence for the merger anyway.
According to NPR, the Justice Department and FCC “were concerned about having such a huge player in broadband.” Both cable providers create a lot of their own content, including Comcast-absorbed NBC Universal, and increased demand for a la carte services like HBO Now shows that consumers don’t want to pay for pricey, overstuffed cable packages just to get their high speed internet.
“We structured this deal so that if the government didn’t agree, we could walk away,” said Comcast CEO Brian Roberts Friday.
The deal’s collapse, in an age of increasing disillusionment with big-guns cable providers, has experts suggesting that internet access should be government-regulated as a utility rather than a privately offered service.
What do you think?