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Comcast, Time Warner Move Higher Amid Dissolution Of Acquisition

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Comcast, Time Warner Move Higher Amid Dissolution Of Acquisition
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Shares of Comcast Corporation (NASDAQ: CMCSA) jumped following news that it will abandon its pursuit of Time Warner Cable Inc (NYSE: TWC).

Comcast planned to walk away from the proposed $45 billion takeover of Time Warner, according to a report from Bloomberg, with a formal announcement expected as soon as Friday.

“This week, U.S. Federal Communications Commission staff joined lawyers at the Justice Department in opposing the planned transaction. FCC officials told the two biggest U.S. cable companies on Wednesday that they are leaning toward concluding the merger doesn’t help consumers,” according to sources speaking to Bloomberg.

Separately, CNBC reported Comcast was holding a call with top executives on the deal. Reuters said "a formal announcement is expected as early as Friday, the person added, asking not to be identified because the deliberations are confidential. Comcast and Time Warner Cable declined to comment."

UPDATE: Comcast Chairman and CEO Brian L. Roberts issued the following statement around 8:30 a.m. ET:

"Today, we move on. Of course, we would have liked to bring our great products to new cities, but we structured this deal so that if the government didn't agree, we could walk away.

"Comcast NBCUniversal is a unique company with strong momentum. Throughout this entire process, our employees have kept their eye on the ball and we have had fantastic operating results. I want to thank them and the employees of Time Warner Cable for their tireless efforts.

"I couldn't be more proud of this company and I am truly excited for what's next."

Comcast traded at $59.71 in Friday's premarket, up 0.87 percent.

Time Warner Cable traded at $150.90, up 1.44 percent, but trended down following Roberts' statement.

Posted-In: Bloomberg CNBC ReutersNews Movers Best of Benzinga

 

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