The FCC continues to stall on the review of the proposed Comcast Corporation (NASDAQ:CMCSA) and Time Warner Cable Inc (NYSE:TWC) merger, raising further concerns about the deal ever coming to fruition. The pausing of the clock is already eliciting concerns as it is creating a logjam for other deals being pursued by other smaller players. Fox business, Charlie Gasparino, reports that there are tens of millions of dollars at stake, awaiting to see how the FCC reacts to the proposed merger.
The pausing of the merger review clock is the latest in a string of setbacks for the proposed merger between Comcast Corporation (NASDAQ:CMCSA) and Time Warner Cable Inc (NYSE:TWC). Smaller players according to Gasparino are waiting to see whether the deal will be approved as it will have a huge bearing on the approval of other deals that don’t have any antitrust issues.
“What my sources are telling me and this are bankers that deal with telecom mergers; there are tens of millions of dollars in fees on the table. That if the Comcast Corporation (NASDAQ:CMCSA) deal gets done with Time Warner Cable Inc (NYSE:TWC) that will clear the way for these other deals. [..] If it doesn’t get done there is going to be a lot of angry people on Wall Street this are huge paydays this year for Wall Street. That may not happen if this doesn’t happen,” said Mr. Gasparino.
The FCC paused the clock on the review of Comcast Corporation (NASDAQ:CMCSA) – Time Warner merger pending a court ruling on whether CBS Corporation (NYSE:CBS) and other media companies need to be compelled to divulge programming contracts for review. The FCC is trying to ascertain how the proposed merger will affect the bargaining power of a larger Comcast/Time Warner Cable Inc (NYSE:TWC).
The agency has already requested for new documents from several media companies in a bid to see whether Comcast and Time Warner Cable Inc (NYSE:TWC) used financial incentives to gain leverage over online rivals. The biggest winners of the FCC shooting down the proposed merger between Comcast Corporation (NASDAQ:CMCSA) and Time Warner Cable Inc (NYSE:TWC) will be programmers according to, Thomas Eagan, Telsey Advisory Group Managing Director.
“[..] There are a lot of programmers and other folks in the larger industry who don’t like this deal or don’t like the idea of this deal. Comcast Corporation (NASDAQ:CMCSA) spends about 40% of its revenue on programming; Charter Communications, Inc. (NASDAQ:CHTR) spends 48% that’s a huge difference. So the concern on the programmers is that the resulting two operators are going to be able to lower their costs, and that’s a bad thing for the programmers Eagan.
Watch the latest video at video.foxbusiness.com
I just made 84% in 4 days by blindly imitating a hedge fund’s stock pick. I will tell you how I pulled such a huge return in such a short time but let me first explain in this FREE REPORT why following hedge funds’ stock picks is one of the smartest things you can do as an investor. We launched our quarterly newsletter 2.5 years ago and not one subscriber has, since, said “I lost money by EXACTLY following your stock picks”. The reason is simple. You can beat index funds by creating a DREAM TEAM of hedge fund managers and investing in only their best ideas. I just made 84% in 4 days by blindly imitating one of these best ideas. CLICK HERE NOW for all the details.