After Comcast failed to buy Time Warner Cable, the company announced Tuesday a deal has been reach for Charter to buy Time Warner Cable for $78.7 billion. The merge would make the company the second biggest cable company behind Comcast. Tom Wheeler apparently reach out to the two companies to tell them that a deal wouldn’t be shot down right away. Of course there is still a process and could still be blocked if something comes up.
“The FCC reviews every merger on its merits and determines whether it would be in the public interest,” Wheeler said. “In applying the public interest test, an absence of harm is not sufficient. The Commission will look to see how American consumers would benefit if the deal were to be approved.” The deal also needs a thumbs-up from shareholders of both firms.
Charter claims that the merger would help them build out public Wifi, its optical network, and increase speeds. It will also bring higher def cable and cheaper phone service. The deal should close by the end of the year, but could take another for the two companies to consolidate all of their assets and properties.
A merger isn’t always the best choice for consumers, but the FCC might be more willing to keep the ISP happy after they passed net neutrality rules. It sounds like the deal will pass, but the two companies stock holders will also need to approve the massive deal.
Tell us in the comments below what you think about a Charter and Time Warner Cable merger in the comments below!