U.S. communications regulators have asked Comcast Corporation (NASDAQ:CMCSA) about the details of its data, web traffic management practices and broadband details in order to review its proposed merger with Time Warner Cable Inc (NYSE:TWC). The two largest cable providers are in talks for a $45 billion merger and The Federal Communications Commission has been reviewing this proposal since many days. In an article on re/code, Amy Schatz said that Federal Communications Commission sent 93 questions to Comcast, asking about each and every detail of their operational strategies, data policies and traffic. Schatz also said that the Federal Communications Commission is also questioning Time Warner Cable Inc (NYSE:TWC) and Charter Communications. Charter Communications wants subscribers from Comcast Corporation (NASDAQ:CMCSA).
Schatz said that seventeen out of ninety three questions from FCC were about Comcast Corporation (NASDAQ:CMCSA)’s Internet policies, interconnection deals and net neutrality policies. Schatz thinks that questions asked by FCC can show the intentions of the regulators and specific areas where they are paying attention to decide about the merger. She said that a questionnaire was given to Comcast four years ago when the company was buying NBCUniversal.
Comcast Corporation (NASDAQ:CMCSA) has commented about this inquiry from FCC and said that there is nothing special about this activity and FCC holds such inquirers every time companies take acquisition or merger steps.
Schatz mentioned some important questions asked from Comcast Corporation (NASDAQ:CMCSA). FCC wants Comcast to explain the detail about their claim that their merger with Time Warner Cable Inc (NYSE:TWC) will save costs worth approximately $1.5 billion in increased earnings before interest. FCC also requested detailed explanation from Comcast about its regional sports networks strategy. Keeping in view Comcast’s poor customer satisfaction history, FCC has asked it a question about how its consumers, pay-TV providers view video programming services offered by the company. Comcast has to submit answers to all the questions until September 11.
Leon Cooperman is one of the biggest shareholders of Comcast Corporation (NASDAQ:CMCSA), having approximately 2.1 million shares of the company so far.
Disclosure: None
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