Is Merger Between Comcast, Time Warner in Trouble?
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Justin Sullivan/Getty Images(NEW YORK) — A proposed merger between Comcast and Time Warner Cable could be in jeopardy.
Regulators are concerned a deal that size would give the new entity an unfair advantage.
“It would take over about 40 percent of the U.S. Internet broadband space. And so the [Department of Justice] is concerned that you get these two companies together, they’re going to be taking over the market and giving them an unfair advantage over all the other companies that are out there,” explains Akiko Fujita with Yahoo Finance.
The Wall Street Journal reports executives from both companies will meet with the Justice Department to discuss options.
“They’re now talking about putting this before a hearing in front of an administrative law judge. And essentially what people are speculating here is that that doesn’t necessarily happen when the [Federal Communications Commission] wants to approve a deal and so people are speculating that this could be that first step in trying to block the deal,” Fujita says.
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