While there are no announcements or facts which point to the cancellation of the proposed Comcast Corporation (NASDAQ:CMCSA) buyout by Time Warner Cable Inc (NYSE:TWC) there appears to be a peculiar nervousness about the actual implementation of the deal!
At the time of the announcement of the proposed merger of the bigger network TV provider, gobbling the smaller player there was no doubts about the FCC approval. However, as the time nears for the authorization, there appears to have emerged issues which may not see the merger through.
While many of these appear to be speculation, there is continued skepticism. For analysts, with an eye on the inner mechanisms of the merger the failure of the stock prices to arrive at same points appears to be the first indicator that all is not well on the merger deal.
Analysts reason that Comcast Corporation (NASDAQ:CMCSA) shares and Time Warner Cable Inc (NYSE:TWC) share are yet viewed as separate companies and therefore a common value has not yet emerged, even as late as November.
On another front, competition too appears to be hampering a bloodless-merger. For, most of the big-time telecom players are lobbying hard to ensure that the merger does not succeed. Many have also begun the anti-merger campaign.
Comcast Corporation (NASDAQ:CMCSA) and Time Warner Cable Inc (NYSE:TWC) acknowledge that the lobbyists have upped their campaigns in recent times on the hope that FCC could well run down the merger. There is also hope that the Justice Department may also raise objections to the proposed deals. This is contrary to the sentiment of opponents in the early months after the proposed merger, when they felt that the company was well connected to ensure that the merger would work.
Comcast has always been ahead, in terms of the strategies for the merger, by announcing early that it would divest much of its interest in cable TV, so that it would cease to be one of the largest after the merger.
