By Dick Miller
WE.CONNECT.DOTS: April 24, 2015 – The merger between the two largest cable companies – Comcast and Time-Warner — appears off . . . at least for now. The jointure would have meant “New Co” would control what nearly half of consumers in this country watch on their big screens and/or download.
Rare in these days, regulators signaled inclination that “New Co” would be too big to swallow. Apparently, the bosses at these two companies believed that opposition could not be overcome. Heading into a direct rejection would have led to a big drop in their precious stock prices.
The decision to abort was not made because these electronic powers did not control enough politicians at the states and Federal levels. The saga of Comcast, for example, represents a sordid example of influence peddling mostly in the person of David Cohen.
Cohen first came to notice as chief of staff to then-Mayor Ed Rendell in Philadelphia. Post Ed’s stint as “America’s Mayor,” both were members of the very influential law firm, Ballard, Spahr, Andrews & Ingersoll. Cohen was not only known to be brilliant, but one of the few who could read, earn the trust of and keep up with the eccentric Rendell.
In July 2002, he became Executive Vice President of Comcast Corporation, in charge of government affairs and corporate communications. If not then, at least since, Comcast has owned Philadelphia thanks to the influence of Cohen and Rendell. Comcast lobbyists were even persuasive in getting the City to make it tougher for consumers to install competitors’ dishes.
Cohen was early known as a prolific fundraiser for Democrat candidates and liberal causes. He and Rendell brought Democrats to equal status in the money part of politics. Cohen raised millions for President Obama in the 2012 campaign. His efforts for Obama were not so noticeable in 2008 because of Rendell’s ties to Hillary Clinton.
In February 2013, Cohen endorsed incumbent Republican Governor Tom Corbett for re-election. He held a fundraiser at his home, bringing in about $200,000. He has also contributed to some Republican U.S. Senators and has been an early supporter of Pat Toomey for re-election next year.
Anyone who joined at the hip with Rendell and then does a 180 to support Corbett is peddling influence. Cohen’s intimacy with Obama alone made the merger a likelihood.
Not often these days do the champions of the “little people” get to celebrate. Minnesota Dem. Senator Al Franken chortled over the weekend. He wrote, “The deal would have been a disaster for consumers. It would have created a cable behemoth that would drive up prices, drive down choices and, if you can believe it, make service even worse.”
Franken tributes the victory to a “strong, consistent grassroots movement.”
Sen. Franken might admit a consumer victory is rare these days, even with Obama running the government. President Reagan preached to us that “bigger is not always bad and in any case it is none of our business.”
Until then, regulators closely scrutinized every proposal. If competition would lessen, chances were the government said “no” to proposed mergers. President Clinton was too busy with NAFTA “footsies” with the Republicans to reverse this process. Obama’s record for consumers is not as good as thought, with the proposed Trans Pacific Partnership an example.
Today, even with Democrats at the helm in Washington and several large states, corporations rule. The most popular way to grow is to buy more business. Among the benefits of such corporate elitism, redundancy is reduced, less labor required to achieve even greater production and innovation not necessary.
Bottom Line: – Influence peddling by corporate heavy hitters carrying bags of money will not lessen thanks to the First Amendment.
