Time Warner Cable Shareholders Approve Comcast Deal

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Time Warner Cable Shareholders Approve Comcast Deal
By Warp3 [Public domain], via Wikimedia Commons

Time Warner Cable Inc (NYSE:TWC) and Comcast Corporation (NASDAQ:CMCSA) have passed another hurdle in their proposed merger. Shareholders of Time Warner Cable have apparently approved that deal.

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Time Warner Cable shareholders overwhelmingly agree

In a press release today, Time Warner Cable announced that its shareholders approved its proposed merger with Comcast. They voted at a special meeting on the proposal this morning. According to the press release, over 99% of the votes were in favor of the merger.

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Comcast shareholders approved the merger on Wednesday. In February, Time Warner Cable agreed to become a wholly owned subsidiary of Comcast. After the merger is completed, all of Time Warner Cable’s stock will be converted into the right to receive 2.875 shares of Comcast Class A common stock.

Under the terms of the deal, which is worth $45.2 billion, Comcast agreed to divest 3 million subscribers. Comcast also gets exposure to 19 of the nation’s top 20 markets and 43 of the top 50 markets. In addition, the company said it will improve the services received by Time Warner Cable customers and improve efficiency for both companies.

Comcast, Time Warner look to regulators

The two companies now must get the approval of regulators. They have been fighting an uphill battle for some time, with Netflix, Inc. (NASDAQ:NFLX) and reform groups opposing the merger, which would create the biggest cable provider in the U.S.

There’s plenty of debate on whether antitrust regulators will go for the proposed merger. The two companies maintain that their services do not overlap in very many markets, so merging would not significantly decrease the amount of competition in most markets by eliminating one competitor. Comcast has also said that if it merges with Time Warner Cable, it would result in more investments, innovation and even competition in the industry.

Interestingly, Comcast donated $110,000 to a charity dinner for Federal Communications Commissioner Mignon Clyburne in August. The donation opened up questions about whether that donation was politically motivated and aimed at greasing the wheels with the FCC to clear the way for the merger with Time Warner Cable.

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Michelle Jones is editor-in-chief for ValueWalk.com and has been with the site since 2012. Previously, she was a television news producer for eight years. She produced the morning news programs for the NBC affiliates in Evansville, Indiana and Huntsville, Alabama and spent a short time at the CBS affiliate in Huntsville. She has experience as a writer and public relations expert for a wide variety of businesses. Email her at Mjones@valuewalk.com.
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1 COMMENT

  1. This merger CANNOT be allowed to happen. There is simply no “public interest” in any of the possible outcomes of this disastrous behemoth combination. Why is anyone taking this seriously? Even beyond the
    obvious “collision of two garbage trucks” that the track record of the two separate companies proves, the power, both market and political, that the combined company would have is beyond anything that should be acceptable to the public. Sure, the “stockholders” have approved. The merger is in NOBODY’s interest except the executives and shareholders. NOT YOU!

    Our entire governmental structure will be shown to be completely corrupt if this merger is allowed to happen. There are no “concessions,” “conditions,” or “promises” that would make it acceptable.

    The new “Comcast” will come for your wallet more than any tax increase you ever thought of. A multiple thousands of dollars per year “tax” increase for internet service–they are publicly predicting $200-$300 per month just for internet service within three to five years–and you are not getting any vote on it. The companies themselves are publicly predicting this. DON’T LET IT HAPPEN!!!

    Vote for Congressional candidates in November that have promised to stop it. If yours haven’t, GET TO THEM, NOW! Vote for the other guy if they don’t promise to STOP THE COMCAST MERGER.

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