Charter/BHN/TWC Faces Uphill Climb for Regulatory OK, Analyst Says
Charter Communications faces a tougher road than it knows or acknowledges in getting regulatory approval to buy Bright House Networks and Time Warner Cable, BTIG analyst Richard Greenfield said in a note Wednesday. While the White House is particularly focused…
Sign up for a free preview to unlock the rest of this article
If your job depends on informed compliance, you need International Trade Today. Delivered every business day and available any time online, only International Trade Today helps you stay current on the increasingly complex international trade regulatory environment.
on promoting broadband competition, the pricing history of Comcast and TWC points to "size/scale ... not leading to the fastest speeds at the lowest prices," Greenfield said. "The government is concerned that new Charter will replicate the behavior of Comcast and Time Warner Cable." Pointing to a transcript of an internal Charter video of a talk between Charter CEO Rob Marcus and TWC CEO Tom Rutledge, Greenfield said Rutledge "appears to completely disagree with President [Barack] Obama, FCC Chairman Tom Wheeler, the FCC and the [Department of Justice]'s viewpoint that there is no meaningful broadband competition, which creates monopoly power." Post-deal Charter "can complete against the great powers in the world ... the Verizons and the AT&Ts and the Comcast and others," Rutledge said in the chat. "Charter does not appear to appreciate how painful approval will be, if it is even possible," Greenfield said. Comcast withdrew its planned buy of TWC after likely DOJ and FCC opposition. Charter had no immediate comment Wednesday.