Comcast May Give Up 3.9 Million Customers To Secure Its TWC Merger
Comcast has reached a deal that will see it offload 3.9 million subscribers if the Time Warner Cable merger goes through. About 1.4 million of those would go to Charter; the remaining 2.5 million will go to a spin-off company where Charter will have a one-third stake (Comcast shareholders own the rest). The move would keep Comcast under 30% of the TV market and make Charter the second-largest cable provider in the U.S.
Of course, this all assumes that regulators approve the acquisition in the first place—there are still plenty of other competitive issues. Advocacy groups and media providers like Netflix still think that a post-merger Comcast would have too much say over which products succeed in the market, letting it restrict services that compete with its own offerings. Without answers to these concerns, the company may not be much closer to completing its takeover.