Time Warner Cable Being Sued To Stop Comcast Deal
Ellisha Rader Mannering
Comments are off for this post.
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.
Here is what the new Comcast/Time Warner cable box will look like pic.twitter.com/xYvJupr80j
— samir mezrahi (@samir) February 14, 2014
What if Comcast and Time Warner Cable can't merge because they give each other a 4-hour window to sign the papers and neither side shows up?
— Jeff Bertolucci (@jbertolucci) February 13, 2014
For this Comcast-Time Warner Cable deal, the FCC should schedule a hearing between 9 and 5 and then just not show up
— Jason O. Gilbert (@gilbertjasono) February 13, 2014
So basically, Comcast is buying Timewarner for the annual GDP of Slovenia.
— Shoq (@Shoq) February 13, 2014
I'd make a Time Warner Cable/Comcast merger joke, but I'm going to spend my last days of internet with my online friends and family.
— Calvin Coolidge (@Silent_Calvin) February 13, 2014
The merger of Comcast and Time Warner Cable will be approved tomorrow sometime between 7am-7pm. Has anyone made that joke yet?
— Andrew Little (@AJLittle304) February 13, 2014
Do you think the deal will make it past regulators and how will it affect customers?
Image via YouTube.