Comcast and Time Warner Cable announced plans to merge over a year ago, but now the deal is dead. This morning Comcast officially announced it was walking away from the proposed $45 billion merger with the nation's second largest cable provider, Time Warner. The deal had been mired in mounting opposition from the FCC. While it's bad news for executives at the telecommunications companies, but could end up working out well for customers.
"Over the last 48 hours, it became absolutely clear that the deal was not going to be approved by regulators," Time Warner Cable CEO Rob Marcus said in an interview with CNNMoney.
Staff at the FCC recently voiced opposition to the merger, because the agency didn't believe it would benefit consumers. The FCC also planned to call a hearing to further discuss how the proposed merger would affect users, and that would cause significant delays and roadblocks for the deal.
FCC staff concluded that an extended hearing was required in part because of the complexity of the issues raised by the deal, according to a person close to the agency. The hearing would have given all sides an opportunity to weigh in on the deal’s impact on issues like innovation, the rise of Internet-based video, cable-TV pricing and bundling of channels.
The collapse of huge merger is likely to affect consumers, other companies and the industry as a whole.