dslreports logo

story category
Comcast Could Spin Off Some Merger Assets Into New Company
by Karl Bode 09:52AM Monday Mar 03 2014
Comcast has quite a chore ahead of it in order to gain regulatory approval, given concerns about vertical integration, overall reach and concentrated market power when it comes to content licensing. One of the ideas being considered as a merger condition would be to spin off some of the acquired customers into an entirely new company.

Comcast already expected to be forced to divest some assets, though according to a report by Bloomberg, Comcast could divest roughly 3 million subscriber to form a new competitor:
Regulators may push for the spin-out because it would create a new competitor, one of the people said, asking not to be identified discussing private information. A new company formed in such a way would be the fourth-largest U.S. cable company by subscribers, trailing the merged Comcast-Time Warner Cable, Cox Communications Inc. and Charter.
Comcast also remains in talks with companies like Charter to simply outright buy those divested customers. Comcast and Time Warner Cable obviously don't compete, so it's unclear how consumers would benefit from simply having 3 million subscribers under a company of a different name.

63 comments .. click to read