Time Warner Cable Being Sued To Stop Comcast DealBy: Ellisha Rader Mannering - February 16, 2014
A Time Warner Cable shareholder is suing Time Warner and hoping to prevent their deal with Comcast. According to the shareholder, the deal is unfair and will likely face high regulatory hurdles. The complaint was filed by investor Breffni Barrett. Barrett claims that he is suing the company on behalf of all Time Warner Cable shareholders.
If the companies were to merge, the result would make up three-quarters of the cable industry. The deal cannot close until the stockholders and regulators approve it, but the company is hoping this will be done by the end of the year. Barrett explained the reason for his lawsuit saying,
“Since rumors first leaked in mid-2013 about several companies interested in acquiring Time Warner, it has been reported that Time Warner failed to engage in good faith negotiations. The sales process was “woefully deficient” and the bid failed to take into account the company’s “positive momentum going forward.”
Barrett also claimed that Time Warner would receive immediate benefits from the deal, receiving as much as $60 million in special payments.
Barrett and the other shareholders aren’t the only ones complaining about the deal, many cable customers are also upset. Many Time Warner customers already complain about slow speeds and bad customer service and just can’t imagine how much worse they could get with a merger. They vented via Twitter and other social networks with jokes and opinions about the deal and the chaos it would cause for cable customers.
Do you think the deal will make it past regulators and how will it affect customers?
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