Comcast Fibernet (Photo : Reuters )
The merger between Comcast Corp. and Time Warner Cable Inc. might not push through and might even impact other cable companies.
Staff attorneys from the U.S. Department of Justice's antitrust division are close to recommending to block Comcast's plan to acquire Time Warner Cable and merge into the largest cable provider in the country.
Comcast will be frustrated if the merger is rejected as it would be giving up very valuable broadband and cable assets in major cities in the U.S. including Los Angeles and New York.
The Philadelphia-based company's proposal worth more than $45 billion is its way of beating competition from satellite providers, phone companies and streaming services such as Netflix Inc., which have already stolen hundreds of thousands of TV subscribers, according to Bloomberg.
Charter Communications said that it will be trying to acquire Time Warner Cable again if Comcast fails to do so. The cable company lost to Comcast about a year ago.
However, Charter might need to pay a higher price than its initial offer. In January 2014, Charter bid $132.50 per share. Macquarie Capital USA Inc. analyst Amy Young said that the Connecticut-based cable company will need to buy shares for about $150 to $160 each.
Several public interest groups and media executives are now concerned that Comcast's merger might not be good for the industry. They fear that the power will allow them to force consumers to pay more for their services, and that other TV networks and Internet companies will be stifled in terms of programming and innovation, according to the New York Times.
Comcast said that the review for their company is expected to be finished in the middle of the year by government regulators. The DoJ currently has no announcements on when it will be giving its decision on the matter.
