Business

Comcast Abandons Time Warner Cable Bid After Gov’t Pushback

Published

10 years ago

April 24, 2015

This Feb. 11, 2011 file photo shows the Comcast logo on one of the company’s vehicles, in Pittsburgh. Wall Street appears increasingly convinced Comcasts $45.2 billion purchase of Time Warner Cable is dead. telling indicator is the gap between the value Comcasts all-stock bid assigned to each Time Warner Cable share and Time Warner Cable stocks current price. That was at its widest point yet Thursday, April 23, 2015, a signal that investors are giving just 20 to 30 percent odds that the deal will go through, said Nomura analyst Adam Ilkowitz. (AP Photo/Gene J. Puskar, File)

TALI ARBEL, AP Business Writers
MICHELLE CHAPMAN, AP Business Writers

NEW YORK (AP) — What killed Comcast’s $45 billion bid for Time Warner Cable? Regulators’ desire to protect the Internet video industry that is reshaping TV.

A combination of the No. 1 and No. 2 U.S. cable companies would have put nearly 30 percent of TV and about 55 percent of broadband subscribers under one roof, along with NBCUniversal, giving the resulting behemoth unprecedented power over what Americans watch and download.

Competitors, consumer groups, and politicians have criticized the deal, saying it would lead to higher prices and less choice.

“The proposed merger would have posed an unacceptable risk to competition and innovation, including to the ability of online video providers to reach and serve consumers,” Federal Communications Commission Chairman Tom Wheeler said in a written statement.

The Justice Department said that Comcast dropped its bid because of regulators’ concerns that the Philadelphia-based cable giant would become an “unavoidable gatekeeper” for Internet services.

One of the concerns consumer advocates and competitors had with the Comcast deal was that it could undermine the streaming video industry that is reshaping TV. Comcast could, for example, require onerous payments from new online-only video providers for connecting to its network. Dish, the satellite TV company behind the new Web video service Sling TV, and Netflix opposed the deal.

“It goes to show you how important broadband is,” said Amy Yong, a Macquarie analyst.

Regulators have taken other steps that signal how important they consider Internet access. The Federal Communications Commission in February released new “Net Neutrality” rules meant to keep broadband providers from charging Internet companies for “fast lane” access or favoring some content. The broadband industry has sued to stop the rules.

“We have to live with it, and respect that, and move on,” Comcast chairman and CEO Brian Roberts said in an interview on CNBC, referring to the government’s opposition to the deal. “We always structured this deal in a way that would enable us to walk away.”

Comcast doesn’t owe Time Warner Cable a breakup fee because the deal didn’t work out.

With the deal between Comcast Corp. and Time Warner Cable Inc. called off, a transaction with Charter Communications Inc. aimed at smoothing the way for regulatory approval also falls apart.

Even with the Comcast and Time Warner Cable deal being nixed, cable companies are likely to keep combining as costs rise for the shows, sports and movies they pipe to subscribers and video customers decrease.

Many analysts expect that Charter Communications could resurrect its own effort to acquire Time Warner Cable.

A combined Charter and Time Warner Cable would have 15 million video customers and 16.5 million Internet customers. That’s still smaller than Comcast alone, which has 22.4 million video subscribers and 22 million Internet customers.

And the $48.5 billion combination of DirecTV and AT&T is still expected to go through.

Shares of Time Warner Cable Inc. rose $2.74 to $151.50 in morning trading while Comcast shares slipped 8 cents to $59.18.

___

Follow Tali Arbel at http://twitter.com/tarbel

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Activism

NAACP California-Hawaii State Convention Highlights Black Voter Engagement, and More

A Friday panel featuring NAACP Chairman Leon W. Russell and Regina Wilson, Executive Director of California Black Media, examined Project 2025, an initiative perceived as a potential threat to civil rights, healthcare access, and environmental protection. This session emphasized Project 2025’s projected impact on Black communities, noting that policies within the initiative could diminish gains in civil and environmental rights over decades. Russell and Wilson highlighted the need for vigilant monitoring and community mobilization to address these challenges.

Published

9 hours ago

November 4, 2024

Oakland Post

NAACP State Conference President Rick Callender (right) engages in a discussion on voter engagement and community advocacy with NAACP President and CEO Derrick Johnson during the 37th NAACP California-Hawaii State Convention in Los Angeles. Photo by Rich Woods.

By Bo Tefu, California Black Media

The 37th NAACP California-Hawaii State Convention concluded on Sunday, Oct 27, following four days of discussions and workshops at the Los Angeles Airport Marriott. Bringing together civil rights leaders, policymakers, and advocates from California and Hawaii, the convention operated under the theme “All In.” The participants discussed critical issues impacting Black communities, including criminal justice reform, health equity, economic empowerment, education, environmental justice, and voting rights.

On Saturday, the President’s Fireside Chat brought together NAACP President Derrick Johnson and CA/HI State Conference President Rick Callender, who discussed the urgency of voter engagement and community advocacy.

Guest speakers included Congresswoman Maxine Waters (D-CA-43), who spoke at the Women in NAACP (WIN) Labor Luncheon about the intersection of labor rights and civil rights. California State Superintendent Tony Thurmond delivered remarks at the Leadership Dinner on education equity, focusing on policies to ensure all students have access to high-quality education.

Honors were given to longtime social justice advocate and former Assemblymember Mike Davis for his work in community activism. At the same time, actor and activist Danny Glover and the Rev. Dr. Amos C. Brown received the 2024 Legacy Hall of Fame Awards, recognizing their lifelong commitments to advancing civil rights.

The convention also offered practical workshops, including “What’s On Your Ballot?,” where coalition leaders provided analyses of California propositions, explaining their potential impacts on community rights and resources. The Voter Turnout Workshop provided background and encouraged participants to promote voter turnout through community-centered outreach strategies.

Sunday’s events closed with a Prayer and Memorial Breakfast honoring the contributions of past and current civil rights leaders.

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Bay Area

Alameda County Judge Blasts Defendants Over Delay in West Oakland Fire Trial

Judge Kimberly Lowell excoriated the RadiusRecycling/SchnitzerSteel defendants in court for causing delays in prosecuting this case. Since the defendants first appeared in court on July 23, they have obtained three extensions of the arraignment date.

Published

9 hours ago

November 4, 2024

Oakland Post

Criminal charges announced this week are related to the August 2023 scrap metal fire at Radius Recycling Inc., formerly Schnitzer Steel. Photo courtesy of Oaklandside.

Special to The Post

District Attorney Pamela Price announced that a hearing was held on October 30 in the criminal prosecution of the Radius Recycling/Schnitzer Steel involving a fire at the West Oakland facility on Aug. 9-10, 2023.

The Alameda County criminal Grand Jury indicted radius Recycling and two of its corporate managers in June 2024.

The court clarified that the defendants will not receive more extensions on their arraignment and plea.

Alameda County District Attorney Pamela Price agreed with the court that defendants should not get preferential treatment. Price and her team appreciated the court for clarifying that future delays by Radius will not be tolerated.

The Bay Area Air Quality Management District’s (BAAQMD) public data shows that during and after the fire, the smoke plume traveled across Alameda County with high levels of PM 2.5 (Particulate Matter less than 2.5 microns in diameter) detected around Laney College in Oakland, Livermore, Pleasanton, and West Oakland.

PM2.5 is particularly harmful to infants and children, the elderly, and people with asthma or heart disease.

“This fire posed a great health hazard to the people of Alameda County,” said Price. “High, short-term exposures to a toxic smoke plume have been shown to cause significant danger to human health.

“Additionally, in this case, Oakland firefighters battled the blaze under extremely dangerous conditions for 15 hours with assistance from a San Francisco Fire Department fireboat and a fireboat from the City of Alameda Fire Department,” Price observed.

The team prosecuting the case from the DA’s Consumer Justice Bureau looks forward to resolving any future motions and having the defendants arraigned in court on Dec. 9.

The media relations office of the Alameda County District Attorney’s office is the source of this report.

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Alameda County

D.A. Price Charges Coliseum Flea Market Vendors in Organized Retail Theft Case

The charges against Octavio Ambriz Valle, 52, Devora Ambriz Valle, 49, and Felipe Del Toro Trejo, 54, include multiple felony counts of possessing stolen property and organized retail theft in concert. It is alleged that the trio of vendors possessed stolen property valued at $348,466 from nine different retailers, including Kohl’s, Macy’s, PetSmart, Sephora, Sunglass Hut, TJX, Target, Walgreens, and Walmart.

Published

10 hours ago

November 4, 2024

Oakland Post

Alameda County courthouse. Courtesy photo.

Alameda County Courthouse File photo.

Special to The Post

Alameda County District Attorney Pamela Price announced today that her office charged three people in connection with multiple organized retail theft crimes stemming from a sophisticated criminal enterprise operating at the Oakland Coliseum Flea Market from March 26, 2023, through April 17, 2024.

It is alleged that the trio of vendors possessed stolen property valued at $348,466 from nine different retailers, including Kohl’s, Macy’s, PetSmart, Sephora, Sunglass Hut, TJX, Target, Walgreens, and Walmart.

Last year, the District Attorney’s Office successfully competed and received a $2 million grant from the California Department of Justice to combat organized retail theft. Price added another $2 million to bolster the Organized Retail Crime Alameda (ORCA) unit which is fully operational and collaborating with numerous law enforcement agencies.

“For over a year, this enterprise supported criminal networks by requesting and buying specific products from brazen boosters who repeatedly terrorized retailers,” said Price. “I want to acknowledge our Organized Retail Crime Alameda (ORCA) Vertical Prosecution Unit for its great work and the role they played in this multi-jurisdiction investigation, which included the California Highway Patrol Golden Gate Division Organized Retail Crime Task Force, the San Mateo County Sheriff’s Office, and San Ramon Police Department.”

If convicted and sentenced on all charges, Octavio Ambriz Valle faces a maximum sentence of nine years in County jail; Devora Ambriz Valle faces a maximum sentence of five years in County jail; and Felipe Del Toro Trejo faces a maximum sentence of three years and eight months in County jail.