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Time Warner and Comcast Merger

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Comcast and Time Warner Merger One of the largest and most controversial proposed mergers in recent history is the acquisition of Time Warner Cable by Comcast. This proposed acquisition was structured through a friendly agreement between Time Warner Cable and Comcast. Comcast, the initiator of this merger, is set to acquire Time Warner Cable’s eleven million managed service subscribers, Time Warner’s other equity holdings in areas such as Sterling Enterprises and DukeNet Communications, along with it’s local programming and news stations. The proposed method of financing for this acquisition is a stock-for-stock transaction. Through this Comcast will acquire all of Time Warner’s 284.9 million outstanding shares for an equity stake in Comcast amounting to 45.2 billion dollars at the current market value (Comcast 1). In order to address competitive market failure concerns associated with the proposed acquisition, Comcast structured a mutual agreement with competing firm Charter Communications under which Comcast will divest 1.4 million existing Time Warner Cable customers to Charter for cash, along with a trade of 1.6 million customers between Charter and Comcast in order to promote and greater enhance the geographic market presence of both firms (Kang 2). Through this additional action Comcast and Charter seek to improve operational efficiencies, grow customer satisfaction, and better deploy technology in their respective markets (Comcast 1). As stated earlier this merger is extremely complex in nature. Much of this complexity stems from the fact that there is a significant amount of prominent politicians, regulatory agencies, legal departments and businessmen situated on both sides of the proposed merger. The question that these parties are tasked with addressing is one of Anti-Trust regulation. Specifically whether or not such a merger should be allowed

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