Comcast, America’s No.1 pay TV and internet provider, says that it has proposed a $45.2 billion deal to purchase Time Warner Cable and according to them, this deal will help in providing faster and more reliable services to even more customers and would help in saving money on TV programming costs.
If this deal is successful, Comcast could become a single dominant force in American entertainment that promises to improve cable TV and provide better internet services to millions of people and also provide viewers with unprecedented control on what they watch and download.
If this deal is approved by the federal regulators, Comcast would be serving almost 30 million pay TV customers and almost 32 million internet subscribers. However, according to some industry analysts, this could give the company uncontrollable power and would ultimately lead to an increase in the price of high-speed internet connections.
This all-stock deal has been approved by the boards of both the companies and it truncates the $38 billion proposal from Charter Communications to buy Time Warner Cable. It will add to another giant acquisition by Comcast, following the acquiring of NBCUniversal for $30 billion. This deal had been completed last week.
Comcast has stated that even after the acquisition it will still follow the conditions imposed by the federal government. A condition that it said it would follow is the requirement to provide standalone internet services that is not tied to any pay TV package.
Another condition states that it has to make programming available without any discrimination against other providers, which also includes online video providers. These conditions are valid till 2018.