It's official: Comcast (NASDAQ:CMCSA) and Time Warner Cable (NYSE:TWC) have mutually agreed to call off their proposed merger. The deal, which drew strong industry and consumer opposition from the start, also faced increasing regulatory resistance from the FCC and the U.S. Department of Justice.
Comcast announced this morning that the TWC merger and its transactions agreement with Charter Communications (NASDAQ:CHTR) have been terminated.
In a statement, Comcast Chairman and CEO Brian L. Roberts wrote, in part: "Today, we move on. Of course, we would have liked to bring our great products to new cities, but we structured this deal so that if the government didn't agree, we could walk away."
TWC Chairman and CEO Robert D. Marcus' statement said, in part: "We have always believed that Time Warner Cable is a one-of-a-kind asset. We are strong and getting stronger. Throughout this process, we've been laser focused on executing our operating plan and investing in our plant, products and people to deliver great experiences to our customers."
The deal's collapse also spells the end of a number of related deals. The creation of GreatLand Connections, originally called SpinCo, a new cable company to be spun off from Comcast in the event of a successful merger, is now a dead letter. Charter's purchase of Bright House Networks, which hinged on a successful Comcast/TWC merger, also seems unlikely to occur, though neither company has yet officially said so.
Next moves for the various companies involved are unclear, but Liberty Global's (NASDAQ:LBTYA) John Malone has expressed interest in having Charter make another attempt to buy TWC if the Comcast merger failed. Liberty owns a 26% stake in Charter, which made an unsuccessful bid to buy TWC last January.
Ron Hendrickson | Contributing Editor
As BTR's managing editor, Ron keeps the editorial wheels from coming off. He gathers and posts daily news, interviews cable's movers and shakers, and generally keeps his finger on the pulse of the industry. He joined BTR in 2010 and got his start in cable in 1998.