Related: Would A Comcast-TWC Merger Benefit The Public? Comcast also can boost revenues by operating systems much like broadcast TV networks run their O&Os, for example by offering advertisers opportunities to target or road-block their messages. Since cities have lots of companies, it’s easier for cable systems in big markets to expand into business services. For example, Malone has said that Comcast should create a competitor to Netflix. With the added reach, Comcast will find it easier to amortize costs for new video and broadband technologies, and launch new services. Wall Street Sees Mixed Impact From Cable Mega-Merger Plans What A Comcast-TWC Could Mean For Hollywood They complement Comcast’s holdings in Philadelphia, Northern California, Houston, Minneapolis, Boston, Seattle, and Miami. In addition to NYC and LA, TWC has substantial franchises in large markets including Dallas, Kansas City, Milwaukee, Cleveland, Cincinnati, Buffalo, Rochester, Hawaii and most of the Carolinas. And he scores TWC’s 11M subscribers, 52 news and local programming channels (including New York’s NY1), and two regional sports networks in Los Angeles. The deal was almost a no-brainer: Roberts keeps Charter Communications and its largest shareholder, Liberty Media’s John Malone, from becoming rival industry powers. Roberts controls the company’s Class B shares which have 15 votes apiece, enabling him to cast a third of all votes. And his power will be secure even after TWC shareholders own 23% of Comcast’s Class A shares. Roberts pulled the trigger because he could pick up some of the country’s most important cable systems - including Manhattan and parts of Los Angeles - without having to write a check. I don’t think he did it, as some observers say, primarily because he’s concerned about the falling number of cable video subscribers, the threat of competition from phone and satellite companies, or to help resist rising programming costs. Let’s not overthink Brian Roberts‘ rationale for engineering Comcast‘s $45.2B all-stock deal today to buy Time Warner Cable.
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