Comcast has decided to withdraw its $45.2 billion offer for Time Warner Cable (TWC) after failing to convince the FCC and other regulators.
Bloomberg reports that opposition to the deal from the US Justice Department and FCC began to take shape over the past week.
Comcast’s board was expected to finalise its decision yesterday (April 23).
On Friday, April 24, Comcast chairman and CEO Brian L. Roberts said in an official statement: “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.
“Comcast NBCUniversal is a unique company with strong momentum. Throughout this entire process, our employees have kept their eye on the ball and we have had fantastic operating results. I want to thank them and the employees of Time Warner Cable for their tireless efforts.
I couldn’t be more proud of this company and I am truly excited for what’s next.”
The death knell to the deal, reached in February 2014, was most probably struck when the FCC decided to call a hearing.
This would have lasted for several months and gone beyond the companies’ time frame for completion.
Significantly, the collapse of the deal is likely to benefit online content companies such as Amazon and Netflix.
Comcast may now turn its attention to acquisitions outside the US, where it may not face as many regulatory issues.
Meanwhile, the future of TWC looks increasingly uncertain.
A deal with Charter could again be on the cards.
