According to a Bloomberg report released today, Comcast has backed away from its proposed $45.2 billion merger with Time Warner Cable that would have integrated two of the country’s largest cable and broadband providers into a single entity. The announcement comes just one day after the Federal Communication Commission made it clear they would oppose the deal, and attorneys from the Justice Department said they felt the deal could be detrimental to consumers. The FCC said it would issue a “hearing designation order” that would extend the approval process, making the acquisition more difficult and expensive for Comcast.
Sena Fitzmaurice, Comcast spokeswoman, and Bobby Amirshahi, spokesman for Time Warner Cable declined to comment on the failed merger today, however, Bloomberg has reported that a formal announcement is expected by Friday.
Previously, the merger faced opposition from consumer advocates who feared that it would create a monopoly that would stifle competition and possibly raise prices for consumers. In many areas of the country, Americans' options for buying cable and Internet services are severely limited. If the merger between Comcast and Time Warner Cable had gone through, the conglomerate would have controlled about 54 percent of the entire U.S. market.