The regulatory examinations of Comcast’s takeover of Time Warner Cable and AT&T’s purchase of DirecTV have been halted by the Federal Communications Commission as it awaits the outcome of a court case.
The pause comes on day 165 and day 170 of the…
The regulatory examinations of Comcast’s takeover of Time Warner Cable and AT&T’s purchase of DirecTV have been halted by the Federal Communications Commission as it awaits the outcome of a court case.
The pause comes on day 165 and day 170 of the respective 180-day processes, although the regulator is not bound to that timeframe.
The FCC has stopped the clock until the United States Court of Appeals for the District of Columbia Circuit rules on whether third-parties may view confidential programming information filed by the companies in relation to the review. It expects a decision by the end of March.
Comcast said it understood the FCC’s decision and described the matter in court as “procedural”.
In a blog post, Sena Fitzmaurice, Comcast’s vice president of government and regulatory communications, wrote: “That case is under expedited review, oral argument occurred in late February, and a decision is expected shortly.
“In the meantime, the FCC appears to be making significant progress in the review of our transaction in order to bring it to a conclusion. The comment cycle is complete, the economists have all weighed in, and the parties have responded to all of the FCC’s requests for information.”
Comcast’s attempt to acquire TWC – a deal which would combine the US’s two largest cablecos – comes amid a time of feverish regulatory change in the US.
The FCC has recently ruled in favour of stricter net neutrality rules following a populist groundswell and the intervention of President Barack Obama, much to the ire of telecoms and cable providers.
When Comcast-TWC was first announced, beltway lawyers suggested to TelecomFinance that the deal was unlikely to face too many issues given the remedies that were built into the transaction.
The sentiment has now changed, although New Street Research analyst Jonathan Chaplin thinks the deal will pass muster.
“We still believe the deal will be approved with significant conditions (with a significant risk that it will be rejected),” he wrote in a note to investors.
In February 2014 Comcast agreed a US$45bn tie-up with TWC, and AT&T agreed to buy DirecTV for US$48.5bn last May.
