We don’t normally cover financial-type news here, but when it involves two of the most massive cable companies on the planet merging, it’s sort of in our wheelhouse. Comcast has announced they’re buying Time Warner Cable for the cool price of $45 billion dollars. The move will give them control of approximately 33% of the cable market.
I can’t imagine that they won’t afoul of some anti-trust issues, and I expect to see at least someone look into this. That said, it will probably go through in the end, and Comcast will end up controlling a huge chunk of the cable market.
Why is this a bad thing? Well, outside of whatever experiences you may or may not have had with Comcast (in my estimation, they’ve actually been alright, but there are plenty of horror stories), this gives them a huge level of control over the market. That means potentially higher prices, worse service and a huge number of other issues present because there quite simply will not be alternative for them in most areas.
Though nothing bad has resulted from this yet as the merge is literally just going through as we speak, it’s hard not to feel a sense of foreboding as two companies this big combine into one amorphous monster.
[Photo via Frank Ocenfals/AMC]