New Jack City: COMCAST Cable Guys Attempt Hook Up With Time Warner

justice-department-080509lSay what you will but buyouts—or so-callede mergers—among power players are the new capitalistic rules of the game…

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.

death-its-a-livingAnother big merger in the consumer arena recently went down in the Death Care biz.

# 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.

the_china_syndromeAt least the above mentioned buyout/mergers involved only AMERICAN companies.

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.

Comcast_marchWill these so-called mergers make for higher consumer prices in their given industries? Most likely. Especially in the cable tv and death care businesses.

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……

 

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9 Responses to New Jack City: COMCAST Cable Guys Attempt Hook Up With Time Warner

  1. mike t. says:

    i’ll believe uncle sam is looking out for us on cable rates (and choices) when i see it. and i don’t think we’ll see it. sure wish surewest served my neighborhood.

    jack… Comcast is also the predominant cable provider in KS – particularly the Wichita and Topeka markets. with the merger, they’d about own eastern KS.

    • jack p. says:

      You can’t put the entire blame for ever increasing cable rates on TWC, Comcast or the other hooker-uppers.
      Remember they’ve got to pay most of the cable networks which keep raising THEIR per subscriber rates at alarming amounts.
      And if that’s not bad enough, the over the air TV stations decided a few years back to ALSO charge cable operators for CARRYING THEIR SIGNALS WHICH ARE AVAILABLE FREE OVER THE AIR!!!! That’s something the FCC should’ve stopped…but it’s become a great new source of revenue for TV station ownerships.
      I’ve talked with three people during the past week that have either disconnected their cable or dish service and have gone back to over-the-air reception. And guess what they’re not missing much…..

      • mike t. says:

        good points…

        I thought about disconnecting… just can’t bring myself to do it yet.

      • hot harley says:

        Jackie…this is the wave of the future….deregulation has
        just reached steroid speed.
        time warner Comcast/sprint dish Nextel t mobile a tand t…
        its just part of the master plan Jackie.
        look at your industry…any real independents left?
        look at the world Jackie….warp speed to massive corporate
        running everything.
        this isn’t new…this was part of the plan.
        and when we find out what the politicians have done
        we’ll have the revolution the tea party dudes have talked
        about.
        wait…Harley says what we will uncover in new jersey
        will be just the start of what this nation has become.
        see..Jackie….the tea party was right…in fact they were
        talking about many of the same things the occupy movement
        was. But the money corporates could never let the public
        really see what was happening because if the American
        public saw that the only reason the corps and politicians
        wanted to split us up was because if we as americans ever
        found out whaat a bunch of suckers we were..and how
        we had gotten ripped off…we would have all taken the
        losers and thrown them all out!!!!!
        the plan is in place…Harley talked about this years ago…
        its just gaining steam….
        see what happened in west Virginia….could happen right
        here in kc or in st. Louis…
        Jackie and pals….we’re f*cked!

  2. undrtkr says:

    Eh, Surewest isn’t all that’s cracked up to be. Had them for two years when I live in Lenexa. Their service wasn’t that impressive and I paid $85 for internet only. Moved to Olathe and am now on Comcast. Better service in my opinion plus its $15/month cheaper.

  3. the dude says:

    A VERY small way Jacky. This has bad plastered all over it except for Comcast and Time Warner shareholders.

  4. Orphan of the Road says:

    Customers loose big time. Comcast’s lawyer is ex-FCC head and the take is they aren’t competitors in the same market. Because both have closed markets, few places they compete. So KC customers, just lay back and enjoy the violations.

    http://www.slate.com/blogs/moneybox/2014/02/14/goldman_sachs_on_oligopolistic_mergers.html

  5. StillAtMyMoms says:

    Meanwhile this could be a prime opportunity for Google to expand their fiber optic network-which is over a hundred times faster than the two-and give the market a much-needed rival. Hey, correct me, but isn’t capitalism supposed to be a free market where in order thrive, you have to be innovative and competitive? Nowadays it’s cronyism bullshit where all you need is a permission slip from the government to acquire a monopoly.

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