Don’t Cry for Comcast’ It’ll Be Okay

2015 05 05   Peter Feinstein   Media and Regualtion    

Comcast’s aborted attempt to merge with Time Warner Cable was a stinging defeat – but small potatoes compared to the power associated with Comcast’s being an internet service provider that will rack up subscriber fees even beyond its cable systems.

The takeaway here is that the people wringing their hands about the deal being called off are living in the past – about 14 months - when the deal was first announced. Technology has leap-frogged the power of what the merger would have made, so both parties (and many others) are actually going to benefit exponentially from the “fallout” of the failed merger.

I’ve contended from the beginning of March, when it became apparent to me that the merger attempt was doomed, that Charter Communications and Time Warner could reprise their merger conversations, and that the government-delayed denial of the Comcast-Time Warner deal actually benefits Comcast, allowing more than a year’s advances in video distribution and ad-buying technology to illuminate where it can find deeper acquisitions in both fields.

Even within the context of a new regulatory reality, everything will be okay for Comcast.