Stop Mega Comcast Coalition is the new force that hopes to halt the proposed merger between Comcast Corporation (NASDAQ:CMCSA) and Time Warner Cable Inc (NYSE:TWC). However, Comcast has claimed that the coalition is making unwanted claims against the proposed transaction. The coalition is made up of companies and pressure groups that have also raised their concerns with the regulators over the proposed merger individually, according to The New York Times.
Mega merger deals
Comcast Corporation (NASDAQ:CMCSA) proposed to buy Time Warner Cable for $45 billion. The Federal Communications Commission and the U.S. Justice Department are reviewing the deal. The regulators are also reviewing the proposed merger between AT&T Inc. (NYSE:T) and DirecTV (NASDAQ:DTV). AT&T seeks to acquire satellite television provider, DirecTV, for nearly $49 billion.
The two mega deals have been widely criticized by rival companies and public interest groups that claim such transactions would stifle competition. There are also claims that such deals would lead to higher costs of Internet and pay television services for the consumers, especially with the cash of Comcast.
In the case of Comcast and Time Warner Cable, Stop Mega Comcast Coalition claimed that the combined company would enjoy undue market advantages that could be misused to hurt competition and increase costs for consumers. They further claim that if the regulators approved the deal, the combined company would have control of about 35% of the U.S. Internet service and nearly one-third of the country’s pay television service.
Among the companies opposed to the merger of Comcast Corporation (NASDAQ:CMCSA) and Time Warner Cable is DISH Network Corp (NASDAQ:DISH). According to Dish Network SVP, Jeff Blum, there is nothing good in the proposed deal between Comcast and Time Warner Cable, expect imminent threat to the media industry.
Strong lobby machine
The coalition has planned to meet with the regulators to raise their concerns and they are also expected to launch media campaigns against the proposed deal. However, they conceded that Comcast has a well-oiled lobby machine, which requires much work to counter. They hope to counter it successfully.
FCC had paused the clock in the 180-day informal countdown to review of the proposed deal between Comcast Corporation (NASDAQ:CMCSA) and Time Warner Cable and that of AT&T and DirecTV.