Comcast’s dreams of conquest are dashed. Reports indicate that the telecommunications behemoth is dropping its bid to merge with Time Warner Cable, a deal that would have made Time Warner Cable the largest internet service provider in the country and de facto monopoly for many Americans.
The bid was dropped following increased scrutiny from the Federal Communications Commission (FCC) which said it intended to oppose the merger along with the Department of Justice (DOJ). Both governing bodies felt the merger between Comcast and Time Warner would not help consumers.
In a statement on their website, Comcast expressed that it was letting go of its hopes for a deal with Time Warner:
Today, we move on. Of course, we would have liked to bring our great products to new cities, but we structured this deal so that if the government didn’t agree, we could walk away.”
Today, we move on.
Currently, Americans have limited options when it comes to internet providers. A merger between Comcast and Time Warner was decried by many for creating a behemoth that could bully markets and continue to drive prices up on consumers while driving down the services they provide.
Attorney General Eric Holder expressed satisfaction with the companies’ abandoning the deal.
“The companies’ decision to abandon this deal is the best outcome for American consumers,” Holder said. “This is a victory not only for the Department of Justice, but also for providers of content and streaming services who work to bring innovative products to consumers across America and around the world.”