Comcast has announced that it won’t be merging with Time Warner after all. A little over a year ago the two companies announced plans to combine in a $45 billion merger that would have created the largest cable provider in the US.
The move faced plenty of scrutiny from regulators and the public, and now Comcast says it’s pulling out of the deal.
The companies had argued that the merger wouldn’t have been anti-competitive, because Comcast and Time Warner largely operated in different markets. But the deal would have given a single company a huge amount of control over the US cable TV and internet service market.
FCC chairman Tom Wheeler says the decision to end the merger is the right one, and that it’s “in the best interest of consumers,” since the combined market would have “posed an unacceptable risk to competition and innovation” in the online video market where new business models are emerging.
In other words if Comcast and Time Warner had persisted in trying to go through with their original plans, the FCC might have attempted to put a stop to the deal.