Comcast has scrapped plans to merge with Time Warner Cable in a $45.2 billion deal that would have combined the country’s two largest cable and broadband providers, according to a Bloomberg report Thursday.
The move comes a day after the Federal Communication Commission said it planned to oppose the deal, joining lawyers from the Justice Department who felt it would not help consumers. The FCC said it would issue a “hearing designation order” that would prolong the deal, making it more difficult and expensive for Comcast.
Comcast spokeswoman Sena Fitzmaurice and Time Warner Cable spokesman Bobby Amirshahi both declined to comment. But Bloomberg reported that a formal announcement of the terminated deal would come by Friday.
The merger faced vehement opposition from many who claimed such a deal would stifle competition by creating a monopolistic beast. As it is, Americans have limited options compared to other developed countries for buying cable or Internet. A combined Comcast and Time Warner Cable would have represented 54 percent of the entire U.S. market.
The reportedly dead merger marks a second failure for Comcast in just the past year. The Philadelphia-based behemoth suffered a loss when the FCC adopted open Internet rules that enshrine net neutrality -- the idea that broadband providers “cannot block, throttle, or create special ‘fast lanes’” for any Internet content.
This is a developing story and has been updated. Simon McCormack contributed reporting.
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