USA TODAY: Comcast agreed to buy Time Warner Cable for $45 billion Wednesday night, swooping in to top a bid by Charter Communications to merge the nation’s top two cable companies in a huge media deal, according to a person familiar with the matter…
The deal is expected to be confirmed by both companies on Thursday morning, but even so any agreement will face intense scrutiny from antitrust regulators, who will have to wade through the issues of competitive pressures and the effects on pricing stemming from merging two cable giants…
But the cable industry could be entering a period of consolidation as it faces challenges from multiple directions, and struggling companies may need a white knight if they are to sustain their business. As evidenced by TWC’s costly fight with CBS Corp. last year over retransmission fees, TV station owners are demanding higher fees for the right to broadcast their signal. Cable networks are demanding higher fees for their shows, as cost of programming, particularly for sports events, rises. And consumers are increasingly ditching their expensive cable bills for online streaming options… (more)
