Despite claims that the removal of the 30% ownership cap will have no effect on mergers and acquisitions in the cable space in the short term, Citigroup media analyst Jason Bazinet called for the mother of all cable deals -- the merging of Comcast and Time Warner Cable -- in a research note Thursday.
Even though the removal of the 30% ownership cap on cable companies appears to have opened the door for mega mergers, many analysts have said that the economic climate, all-time low cable valuations and the paucity of systems available for sale would dampen any major M&A activity in the cable space for quite some time. And even those who believe Comcast could buy a smaller operator -- like Charter Communications or Cablevision Systems -- have said that a Comcast/Time Warner Cable merger would be blocked by federal anti-trust regulators.
Citigroup analyst thinks Comcast and Time Warner Cable should merge
Categories: TV Business
Take two cable companies that do their best to screw over their customers and combine them! Sounds like a plan.
And Citigroup itself was born of one of the largest financial mergers in history and is “too big to fail”. Not that that could possibly color the opinions of its analyst….
Not exactly an on-topic and unbiased opinion here: But this greedy quest for double digit growth in profits is a large factor in the collapse of the financial systems and collapse of our economy. Swallowing up and eliminating the competition leads to monopolies. No, this merger may be legal, but it’s not good move.
I say let them merge BUT also allow everyone in the united states to choose a cable company from COMPETING companies.
A mega-merger of this nature would displace thousands of executives, professionals and staffers who would lose their jobs. It’s a terrible concept on such an enormous scale.