The latest has # 1 cable operator COMCAST hooking up with runner up TIME WARNER CABLE.
The TWC stock price has been as low as about $ 85.00 during the past year. So with a possible buyout price of $ 159.00 TWC shareholders could leave the table with a hefty profit.
Not familiar with COMCAST?
Sure you are. They currently operate locally in Independence and Olathe. They also own the NBC Television Network, Universal Pictures and Studios as well as various NBC cable networks like MSNBC CNBC, etc.
Will the deal go through?
Most likely. But probably not without the Feds making COMCAST give up some crums in return. Especially in markets like Kansas City where COMCAST would probably be far too strong for the government’s tastes. Divesting certain holdings would allow competitors to…well still compete.
Let’s tale a look at two other recent big boy mergers.
Before the Feds allowed USAirways to buy American Airlines , AA had to give up a number of valuable slots at airports in Washington, DC, New York and Dallas just to name a few.
So how did WE benefit?
Well, Southwest picked some of those slots and is introducing new non-stop Kansas City service to Washington-Reagan because of it.
# 1, Service Corporation International (SCI) which operates the most funeral homes with names like Dignity Memorial in the Kansas City market picked up # 2 Stewart Enterprises.
You, of course know Stewart Enterprises better as D.W. Newcomer’s Sons.
But here again before the morgue merger was approved, the government forced SCI to divest itself of a number of funeral parlors throughout the country including some right here in K.C.
You can’t say that about Leawood based AMC Entertainment which sold out to Chinese based Wanda Group. Ditto Overland Park based Sprint which now bows to Tokyo’s SoftBank Corporation.
But give credit where credit is due. At least Uncle Sam isn’t taking it without asking a lot of questions first—and frankly looking out for us.
Even if it’s only in a small way……