Comcast and Time Warner Cable Merger - 523 Words

Most everyone subscribes to some type of cable service. When Comcast announced plans to merge with Time Warner Cable back in February, Congress was quick to criticize the deal (Popelka). Many members of Congress were not in favor of the merger, and rumors of an antitrust review were imminent (Popelka). This is a great example of how U.S. antitrust policy has turned into a political game( Popelka). Politicians may gain supporters, but no one is going to decrease the cost of cable service to consumers (Popelka). Antitrust laws were put into place for a reason. The Sherman Antitrust Act was created to prevent monopolistic activities that diminish consumer choice or competition (Popelka). In this case, the merger between these two companies will not take away consumer choice because they operate in different geographies (Popelka). Cable companies are struggling to keep up with the demands of younger consumers who are interested in online services instead of cable (Popelka). Politicians w ho oppose this merger are using the Herfindahl-Hirschman Index (HHI) to evaluate monopoly status (Popelka). Comcast has found a way around this so they can stay below a mythical 30 percent HHI market share threshold (Popelka). Comcast will be appearing before the Senate Judiciary Committee in April to answer questions about the merger with Time Warner Cable (Carr). Many want to know how it is possible for the largest cable company to acquire the second largest cable company (Carr).Show MoreRelatedComcast And Time Warner Cable Merger Essay1954 Words   |  8 Pagesï » ¿ Comcast and Time Warner Cable Merger Haley Miller, April Brooks-Price, Heather Henley, Germaine Wright, and Anthony Young American InterContinental University Abstract Included in this paper the firms I the proposed merger are described thoroughly. Annual sales and extent of their operations are listed. The incentives to consolidate from the firm’s point of view are shown. 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