As expected, Comcast today announced that it has ended its $45.2 billion bid to acquire Time Warner Cable.
"Today, we move on. Of course, we would have liked to bring our great products to new cities, but we structured this deal so that if the government didn't agree, we could walk away," Comcast CEO Brian Roberts said in a statement.
"Comcast NBCUniversal is a unique company with strong momentum," he continued. "Throughout this entire process, our employees have kept their eye on the ball and we have had fantastic operating results. I want to thank them and the employees of Time Warner Cable for their tireless efforts."
"I couldn't be more proud of this company and I am truly excited for what's next."
More than a year ago, Comcast said that a combined company "creates a company that delivers maximum value for our shareholders, enormous opportunities for our employees and a superior experience for our customers."
Regulators, however, did not agree. A week ago, reports emerged that Justice Department officials had concluded that the deal would be harmful to consumers. Then, the Federal Communications Commission, the other federal agency that needed to approve the deal, called for a hearing designation order, according to The Wall Street Journal. That turns the proceedings over to an administrative law judge, which doesn't usually happen unless the FCC is opposed to the deal.
The FCC did the same thing in 2011 with the AT&T-T-Mobile deal, which eventually fell through, too.
In a statement today, FCC Chairman Tom Wheeler said ending the merger "is in the best interests of consumers."
"The proposed transaction would have created a company with the most broadband and the video subscribers in the nation alongside the ownership of significant programming interests," Wheeler continued. "Today, an online video market is emerging that offers new business models and greater consumer choice. The proposed merger would have posed an unacceptable risk to competition and innovation, including to the ability of online video providers to reach and serve consumers."
Unlike the AT&T and T-Mobile deal, Comcast-TWC does not include a break-up fee, so there is no windfall for TWC for its troubles. Usually, deals of this nature include a fee that is paid to the acquired company if the deal goes south. T-Mobile, for example, got a nice chunk of change when AT&T ditched plans to buy the carrier, which it has used to make some of its "un-carrier" moves.
Consumer groups were predictably pleased by the demise of Comcast-TWC.
"This is a huge victory for consumers. If Comcast had bought Time Warner Cable, it would have been able to stop new kinds of innovative video services dead in their tracks," said John Bergmayer, senior staff attorney at Public Knowledge, which called on the FCC and DOJ to release details of their investigation into the deal.