Recently there have been allegations against Comcast Corporation (NASDAQ:CMCSA) that they are trying to influence the decision maker at the Federal Communications Commission (FCC). These Allegations are mainly due to the fact that they are awaiting approval from the FCC regulator for their merger with Time Warner Cable Inc (NYSE:TWC). Fox Business’s Liz MacDonald reported on this issue and the Comcast’s response to the concerns.
In February, Comcast Corporation (NASDAQ:CMCSA) proposed a $45 billion bid to acquire Time Warner Cable Inc (NYSE:TWC). This merger was awaiting approval from the Federal Communications Commission (FCC).
Macdonald reported that, Comcast Corporation (NASDAQ:CMCSA) and Time Warner Cable Inc (NYSE:TWC) decided to sponsor the Walter Kaitz Foundation’s Annual dinner, which is supposed to take place in September.
She added that this dinner would promote the diversity and workforce of the cable industry. She pointed out that, they were planning to honor the FCC Commissioner, Mignon Clyburn during the dinner, but Clyburn will soon be reviewing the merger proposal. This provoked the questions that if Comcast and Time Warner Cable Inc (NYSE:TWC) are trying to influence the FCC decision on the merger.
“[…] The Comcast donation of $110,000, Time Warner Cable’s donation of $22,000, were perceived by ethics watchdogs as a move to try to influence the FCC and its approval for the Time Warner-Comcast merger,” MacDonald reported.
She added that the Comcast Corporation (NASDAQ:CMCSA) was insulted with the concerns and came out with a heated response.
She quoted the Comcast Corporation (NASDAQ:CMCSA) response, “We absolutely dispute the notion that our contributions have anything to do with currying favor with Commissioner Clyburn or any honoree. Such claims are insulting and not supported by evidence.”
Comcast Corporation (NASDAQ:CMCSA)’s merger with Time Warner Cable Inc (NYSE:TWC) would give dominance over the cable industry in the US for the combined company. Many competitors believed that this merger would monopolize the Cable industry.
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