US: Rivals Comcast, Charter consider loophole to competing Time Warner bids

Rival broadcast conglomerates Comcast Corp. and Charter Communications Inc. are reportedly discussing ways around bidding against each other to acquire Time Warner Cable Inc.

Comcast and Charter are considering a breakup of Time Warner, a move that would not only avoid a rival bidding process, but one that could also avoid major regulatory scrutiny of the acquisition.

Unnamed sources told reporters of the explored option last week.

The deal could be especially beneficial to Comcast, as a buyout of Time Warner would be a merger between the nation’s two largest cable firms. Reports say the deal would likely attract intense scrutiny from the Federal Communications Commission as well as antitrust authorities, as the merger would lead to a company with nearly three-quarters of the country’s cable subscribers, reports say.

While discussions between Comcast and Charter Communications are in their early stages, the deal would resemble a similar agreement struck in 2006 when Comcast and Time Warner agreed to split up Adelphia Communications Corp. to avoid competing bids.

Full Content: Businessweek

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