Detroit filed largest municipal bankruptcy in the history of US in 2013. Since then, the retail business and local industry is on the fall. Comcast Corporation (NASDAQ:CMCSA) is also reportedly shutting down its operations in Detroit, according to an article on Bloomberg. The company has taken this decision to deplete its market share in order to make itself eligible for its merger with Time Warner Cable Inc (TWC). Comcast Corporation (NASDAQ:CMCSA) will lose 2.5 million customers in Detroit and adjoining areas.
Comcast Corporation (NASDAQ:CMCSA) will get a huge boost in New York and Los Angeles after this step. The source claimed that Comcast will add no less than 7 million new customers in its base in these two areas after $45.2 billion acquisition of Time Warner Cable Inc (TWC).
Customer service remains a nudge for Comcast Corporation (NASDAQ:CMCSA). Recently, Mayor Bill de Blasio asked the company to mend its customer service in order to make itself eligible and suitable for a likely merger with Time Warner Cable Inc (TWC). The article quoted David Osberg, city administrator of Eagan, Minnesota who also complained against Comcast bad customer service.
James Fouts, mayor of Warren is worried about Comcast’s latest decision to ditch Detroit. Fouts thinks that the people in the area were enjoying the service and they are not sure about the future.
In absence of Comcast Corporation (NASDAQ:CMCSA), the cable service will be provided by Greatland Connections. The company is a result of Comcast’s tax-efficient spinoff. Greatland will start its operations under a debt of around $7.8 billion. The source says that Comcast Corporation (NASDAQ:CMCSA) wants to make this transition from Comcast to Greatland completely seamless for its customers.
Ken Fisher’s Fisher Asset Management owns over 12 million shares in Comcast Corporation (NASDAQ:CMCSA) and John Paulson’s Paulson & Co owns over 5 million shares in Time Warner Cable Inc (NYSE:TWC).
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