Analyst weighs benefits of a Comcast-Time Warner union

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.  

For more:
- Reuters has this article

Suggested Articles

icrosoft took the wraps off of a new cloud service for Azure via its partnership with Genesys.

Ahead of next month's fourth quarter earnings, Windstream touted its 2019 broadband achievements this week.

Cincinnati Bell announced on Friday that it has received an unsolicited buyout bid from an "infrastructure fund" for $12 a share in cash.