It's been barely two weeks since the cable industry convinced the U.S. Court of Appeals to overturn the FCC's 30 percent cable ownership cap ruling, and already rumors of cable mega-mergers are starting to fly. One analyst believes that a marriage between Comcast and Time Warner Cable, for example, would offer a number of benefits to both MSOs. Jason Bazinet, an analyst from Citi, wrote in a note to clients that such a merger would create a company with 37 percent of the pay TV market in addition to providing $2.7 billion in savings and a clear wireless services roll out path.
Although the U.S. Court of Appeals recent ruling on cable ownership could potentially inspire cable M&A activity, other analysts aren't so sure. Instead, they believe Comcast will focus on buying up small to mid-sized cable operators. To date, Comcast commands approximately 25 percent of the U.S. cable TV market. And even if a deal between the two cable giants was put on the table, they would still have to get the FCC's approval to make such a marriage official.
- Reuters has this article