Report: Comcast will abandon Time Warner acquisition

Last Friday, a report surfaced that Department of Justice lawyers would recommend against Comcast's acquisition of Time Warner Cable. Against that backdrop, it appears that Comcast is giving up. Bloomberg now reports that the company will abandon its acquisition of the second-largest cable company in the USA.

In addition to the Department of Justice's opposition to the deal, the Federal Communications Commission apparently isn't happy with Comcast's proposed acquisition. According to Bloomberg's unnamed sources, the commission had intended to call an extended hearing regarding Comcast's plans, the prospect of which is said to have snuffed out most of Comcast and Time Warner's hopes for a successful closing of the deal.

Should Comcast's acquisition plans fall apart, there may be a fair amount of chaos to come. Bloomberg states that Charter Communications, the nation's fourth-largest cable operator, had been set to gain 3.9 million Comcast subscribers as part of the Comcast-Time Warner acquisition plan. That wouldn't happen if the deal is dead. Charter may also resume its own attempts to merge with Time Warner Cable, the most recent of which fizzled last year.

Update — Comcast has officially terminated its bid to acquire Time Warner Cable. The company's short statement on the matter can be found here.

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