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A Time Warner Cable Shareholder Sues Over Comcast Deal
by Karl Bode 01:16PM Tuesday Feb 18 2014
A Time Warner Cable shareholder has sued to stop Comcast's $45.2 billion takeover over the company, arguing the deal faces steep regulatory approval hurdles and was the result of "unfair dealing." According to Bloomberg, the lawsuit aims to stop the "sale of the company at an unfair price through an unfair and self-serving process to Comcast." Shareholder Breffni Barrett argues that Comcast's massive size raises antitrust concerns that wouldn't have come with a smaller suitor like Charter (even though Charter refused to make an offer above $132 per share).

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Darknessfall
Premium
join:2012-08-17
kudos:6

2 edits

Hmmmm....



I wonder if this merger will actually come to be.....
tanzam75

join:2012-07-19

1 edit

Re: Hmmmm....

said by Darknessfall:


I wonder if this merger will actually come to be.....

Maybe, maybe not. But that will be decided by the FTC, the FCC, and the DOJ. This lawsuit is highly unlikely to affect the outcome.

Every time a merger is announced, someone will sue over it. We simply live in a litigious society.

If the plaintiff had been a big investment firm with the resources to launch a proxy fight, then it's a real fight to stop the merger. That would be news.

But if it's some random shareholder, then it's just a lottery ticket. If you search for "Breffini Barrett," you discover he is a psychologist in San Diego. If you then read the complaint filed in the Superior Court of New York, you discover that this was a filed as a class-action lawsuit, and that Mr. Barrett's attorneys are based in San Diego. Yup, same Breffini Barrett.

In other words, Mr. Barrett is a front, being used by some money-grubbing lawyers to try and get a cash settlement out of Time Warner Cable. Happens all the time with mergers. In fact, I'm surprised there's only one lawsuit. Sometimes we see three or four, by different law firms, all trying to get a piece of the action.

Corporate mergers are usually approved by more than 90% of the shares. Once this happens, it becomes almost impossible to stop a merger in court. Which is why I call it a "lottery ticket."
en103

join:2011-05-02

I'm not surprised...

This may end up like the AT&T / T-Mobile deal.
If I was Time Warner, I would have put in some conditions such as a payout of $5 billion should the deal not go as planned (regulatory) , or require breakup/sale of assets to appease regulators.
AVonGauss
Premium
join:2007-11-01
Boynton Beach, FL

1 recommendation

Re: I'm not surprised...

said by en103:

This may end up like the AT&T / T-Mobile deal.

Nope, not even close. The T-Mobile deal would have removed a competitor from many markets while the TWC deal has very little overlap.
en103

join:2011-05-02
Reviews:
·Time Warner Cable

Re: I'm not surprised...

While that is true that there is very little overlap - this would effectively be more similar to a Bell of the old - a single company with too much power/influence on the national level.

The only 'good' that can come of this - is a direct competitor to AT&T/Verizon - but they don't all sell the same products in the same markets either.

Anonymous_
Anonymous
Premium
join:2004-06-21
127.0.0.1
kudos:2
Reviews:
·Time Warner Cable
said by AVonGauss:

said by en103:

This may end up like the AT&T / T-Mobile deal.

Nope, not even close. The T-Mobile deal would have removed a competitor from many markets while the TWC deal has very little overlap.

Yes but exclusive content is the issue at hand

such as the los angeles dodgers/ TWC deal.

too much power over exclusive content
--
Live Free or Die Hard...
en103

join:2011-05-02
Reviews:
·Time Warner Cable

Re: I'm not surprised...

The TWC Los Angeles Dodgers/Angels is similar to Cablevision + MSG - however, once you start adding in NBC/Universal + the size of the new Comcast - you'll find

a) Cost of 'exclusive' content to be through the roof for DTV/AT&T Uverse/FiOS and probably other companies - why - because they now 'own' it and can squeeze the competitors out.
b) OTA service / CATV service will disappear very quickly in favor of STB .
c) Caps will be implemented (TWC in all fairness were attempting this already)
d) Less opportunity for thinking outside the corporate box. Your service will be dictated to you (more than it already is).
e) Price increase. In theory, this should give HUGE savings to the consumer. If anything, Comcast was (and will be again) more expensive.
AVonGauss
Premium
join:2007-11-01
Boynton Beach, FL

1 recommendation

While I understand your point, content isn't even going to remotely play a factor in the merger as far as any reviewing agency is concerned. Sports is probably a bad example from a good citizen perspective, they are more scrupulous than Comcast and AT&T combined with how they operate their business and availability.

tshirt
Premium,MVM
join:2004-07-11
Snohomish, WA
kudos:5
Reviews:
·Comcast
said by en103:

If I was Time Warner, I would have put in some conditions such as a payout of $5 billion should the deal not go as planned

And TWC would in return pay $5 billion to comast if a deal the TWC board agreed to was broken up by TWC shareholders?
in any deal you'll find some unhappy they didn't get more or that the sale is happening at all.

The TWC board was determined to sell to someone, Comcast offered the best price and can actual pay it, unlike charter which was offering far more than they could afford at a much lower price.

SpottedCat

join:2004-06-27
Miami, FL

Become a shareholder?

I wonder if I can buy one share of TWC and join the lawsuit.

I wouldn't mind doing my part to stop this injustice!

Anon

@wavecable.com

1 recommendation

Re: Become a shareholder?

They don't even have the same markets... How is it an injustice?

IPPlanMan
Holy Cable Modem Batman

join:2000-09-20
Washington, DC
kudos:1

A noble effort...

Hope this shareholder is ready for a tax audit.
jjeffeory

join:2002-12-04
USA

Re: A noble effort...

That's what I was thinking!

anonomeX

@comcast.net

"self-serving"?

...oh, the irony...
dirtydog74

join:2007-02-27
Beaverton, OR

Market

I'm surprised that no one is considering the fact they still compete in the whole US market and not just the state, city, etc. If this goes through it will lessen the competition in the whole US market for all cable, phone, and internet.

hayabusa3303
Over 200 mph
Premium
join:2005-06-29
kudos:1

shareholders..

this is one reason america has turned to crap do to people like this all they want is money money money... I got news for you you cant take it with you you DIE a#@holes......

IPPlanMan
Holy Cable Modem Batman

join:2000-09-20
Washington, DC
kudos:1

Re: shareholders..

Maybe you've got something against leaving it for the ones you care about?

DaveDude
No Fear

join:1999-09-01
New Jersey
kudos:1
Reviews:
·Comcast

Re: shareholders..

said by IPPlanMan:

Maybe you've got something against leaving it for the ones you care about?

If you sign up for obamacare, you leave it to the state.

IPPlanMan
Holy Cable Modem Batman

join:2000-09-20
Washington, DC
kudos:1

2 edits

Re: shareholders..

Um. How's that?

I guess if your insurance costs are higher, then you've given more money to the state. Not sure where else you are going with this.
brad152

join:2006-07-27
Phoenix, AZ
Reviews:
·CenturyLink

Re: shareholders..

The funny thing is my insurance prices dropped for better coverage by going through "obamacare" as well as everyone else i know.

This includes people of all age ranges from their 20's to 60's

Forbid we do what's right and ensure everyone has decent health insurance so those of us who have always kept it do not have to end up paying $7000+ for a short 1-2hr ER visit due to me subsidizing the ones who decided it was not important and couldn't pay their bill.

The thought process of some people still boggles my mind to this day.

IPPlanMan
Holy Cable Modem Batman

join:2000-09-20
Washington, DC
kudos:1

Re: shareholders..

What about the people who lost their plan/doctor? Guess you want to write them off despite the promises made.

What about the promised premium savings of $2500? Didn't happen, but whatever.

All lies.