One Step Closer: Judge Concludes Time Warner Cable-Charter Combo Is In Public Interest

Shares of Time Warner Cable Inc TWC and Charter Communications, Inc. CHTR were both trading higher by nearly 2 percent.

The mega merger between the companies cleared a key regulatory hurdle, as a California administrative judge recommended in a legal briefing document to approve the merger. The merger still requires the seal of approval from the Federal Communications Commission and the U.S. Department of Justice.

The judge's document states that the combination of the companies "are in the public interest" as the joint entity could "create an advanced, growth-oriented company poised to better provide competitive, high quality voice and other communications services."

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Despite the judge's findings, proponents of the deal argue that the competitive landscape among internet providers is scarce.

The judge's document addresses these concerns and states, "What we can do is hold the merging companies to their promises of increased service, fairer pricing, less onerous contracts, and equal access and require them to translate those vague promises into concrete commitments. "

Charter welcomed the judge's findings in a statement.

"We are pleased the regulatory process is moving forward and will continue our productive engagement at the California Public Utilities Commission as we work toward obtaining final approval in the weeks ahead and bringing the benefits of New Charter to more Californians," the Los Angeles Times quoted Charter spokesman Alex Dudley as saying in a statement.