For Immediate Release
Timothy Karr, 201-533-8838
Comcast’s Proposed Divestiture Gives Cold Comfort to Consumers
WASHINGTON - On Monday, Charter Communications and Comcast Corporation announced that the companies have agreed to create a new corporate entity that would take over the cable accounts of several million Comcast and Time Warner Cable subscribers.
According to the agreement, if Comcast merges with Time Warner Cable, it will divest systems, resulting in a reduction of about 3.9 million video customers — with some going to Charter and others going to this new entity. Time Warner Cable would divest about 1.4 million accounts.
The agreement is part of Comcast’s effort to make its proposed merger more palatable to the regulators charged with reviewing the deal.
Free Press Policy Director Matt Wood made the following statement:
"This convoluted transaction may change the final tally of subscribers under the proposed merger, but it can't change the fact that this deal is a big loss for innovation and competition.
"Cable barons have always been great at dividing up the country and refusing to compete with each other. Transforming three giant companies into two behemoths gives no comfort to content providers or consumers. Lawmakers and antitrust authorities shouldn’t be fooled either."
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