Bernie Sanders, Senators Concerned Over Charter-Time Warner Merger

U.S. Presidential candidate and Vermont Senator Bernie Sanders, along with other Senators, delivered a letter to the U.S. Department of Justice and Federal Communications Commission regarding Charter Communications, Inc. CHTR's proposed takeover of Time Warner Cable Inc TWC.

The Senators expressed their "significant concern" over the proposed acquisition that could have "negative effects on consumer choice, competition, and innovation" within the broadband and online video marketplaces.

"The proposed 'New Charter' would effectively create a nationwide broadband duopoloy, leaving New Charter and Comcast largely in control of the essential wires that connect most Americans to how we commonly communicate and conduct commerce in the 21st century," the letter stated. "The two companies would control nearly two thirds of the nation's high-speed broadband homes."

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The letter continued that broadband is "not a luxury," rather it is an "economic and social necessity" for both consumers and businesses. As such, the Department of Justice and Federal Communications Commission should "carefully evaluate" how the proposed takeover would impact the telecommunications market.

The Senators also argued that the industry needs "greater competition," not "greater consolidation."

Finally, the letter expressed concerns over the high level of debt that Charter will undertake to finance the acquisition. Specifically, the Senators are concerned that this debt might be passed on to consumers or impact new investments in rural areas.

Shares of Charter were trading nearly flat after Friday's opening bell at $182.97, while shares of Time Warner Cable were also trading nearly flat at $193.71.