After word spread yesterday (April 22) that the FCC was planning to recommend putting Comcast's desired takeover of Time Warner Cable in front of a judge, Comcast is planning to abandon the deal entirely, according to a report from Bloomberg. The FCC's recommendation of a "hearing designation order" could have delayed the deal by months, all but preventing it entirely.
The acquisition, which valued TWC at $45.2 billion, was defended by Comcast in a blog post yesterday (April 22), with David L. Cohen, evp and Chief Diversity Officer at the company, writing -- in reference to the company's "Internet Essentials" program, which provides lower-cost home Internet service for families that also qualify for the National School Lunch Program -- that Comcast would "rather try, in the spirit of President Kennedy, to light a candle than to curse the darkness." The program was criticized for being too unwieldy and confusing for its target audience to take advantage of, and cited as an example of the problems that could arise from further consolidation of the broadband market in the country.
Comcast stock is on the descent, timed almost precisely to the timing of Bloomberg's report; at 3:15pm ET the stock was selling at $60.50, dropping to $59.84 by 3:35pm ET, still above the previous day's closing price of $58.76.