Comcast ‘to drop $45bn TWC bid’

Comcast is reportedly abandoning its US$45bn merger with Time Warner Cable (TWC), a decision that would end an attempt to unite the two largest cable operators in the US.

Comcast is said to be walking away from the merger after months of regulatory scrutiny from the US Federal Communications Commission (FCC), according to Bloomberg.

The news comes despite chief financial officer Michael Angelakis recently saying he was “optimistic” a deal could be reached.

The FCC has been continuing to study whether the move is in the public interest and this week joined lawyers at the Justice Department to oppose the transaction – the biggest suggestion yet the merger will fall through.

The deal, confirmed in February, would have united the subscriber bases of leading US cable operator Comcast (23 million) and second-largest operator TWC (12 million).

Its failure to go ahead will no doubt strengthen the position of online players such as Netflix and Amazon in the internet market.

UPDATE – Comcast has now confirmed it is dropping the plans.

Comcast chairman and CEO Brian Roberts said: “Today, we move on. Of course, we would have liked to bring our great products to new cities, but we structured this deal so that if the government didn’t agree, we could walk away.

“Comcast NBCUniversal is a unique company with strong momentum. Throughout this entire process, our employees have kept their eye on the ball and we have had fantastic operating results. I want to thank them and the employees of Time Warner Cable for their tireless efforts.

“I couldn’t be more proud of this company and I am truly excited for what’s next.”