Skepticism continues to mount on whether the proposed merger between Comcast Corporation (NASDAQ:CMCSA) and Time Warner Cable Inc. (NYSE:TWC) will ever come to a full realization. The derailment this time around has to do with Time Warner failing to produce the necessary documents in a timely manner. Bloomberg’s, Paul Sweeney, believes that despite the recent hurdles, the deal will be finalized heading into 2015.
“I think this deal is going to get done, but this is a huge deal in the context of AT&T Inc. (NYSE:T) also looking to buy DirecTV (NASDAQ:DTV). If you are the FCC, you have to make sure all your eyes are dotted, and your teeth are crossed. This is the second time they have stopped the clock, and they are talking about another 30,000 documents that have to be reviewed,” said Mr. Sweeney.
The review has mostly been derailed by the fact that all the content providers are also entitled to review the deal and especially look to negotiate better deals for their contents from Comcast Corporation (NASDAQ:CMCSA). Sweeney notes that it is unusual for the FCC to stop the clock on the review process twice, clearly showing how important the deal is to all the players in the space.
“This is a deal that Comcast has to get done in its estimation and, in order to do that there are some concessions that they have to make along the line,” said Mr. Sweeney.
Comcast is looking to buy Time Warner Cable Inc. (NYSE:TWC) as cable companies continue to transition into broadband companies. The need for fast internet speeds in homes is making the broadband industry to grow at an alarming rate as more people continue to prefer having their content on a need basis.
Broadband companies are also expanding their wireless hotspots as one of the ways of keeping up with the growing demand for wireless internet services.
Comcast Corporation (NASDAQ:CMCSA) however, remains bullish on the deal going through especially on Time Warner Cable Inc. (NYSE:TWC) showing willingness to meet all the FCC requirements.
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