Mergers & Acquisitions and TV and Media & Marketing

Indiana among states probing Comcast-Time Warner deal

March 20, 2014

Comcast Corp.’s proposed acquisition of Time Warner Cable Inc. is being probed by at least six states, including Indiana, that have joined a federal review of whether the deal violates antitrust laws.

The attorneys general of Indiana, Florida, Ohio, Connecticut, Pennsylvania and Maryland are reviewing the $45.2 billion deal that was announced last month, their offices said Wednesday.

The Justice Department and the Federal Communications Commission are also reviewing the takeover, which would combine the two largest U.S. cable companies. Comcast plans to divest about 3 million subscribers of the combined company to keep its market share below 30 percent.

The attorneys general enforce state antitrust laws and can put pressure on the Justice Department to seek tougher conditions if they think the government isn’t being aggressive enough, Paul Gallant, a managing director for Guggenheim Securities, said in a research note.

“In practice, states rarely diverge from DOJ,” Gallant said. “So as long as DOJ approves this merger, states are highly likely to do the same.”

Florida and Pennsylvania were part of a group of states that joined the Justice Department’s lawsuit last year seeking to block the merger of AMR Corp. and US Airways Group Inc. The companies settled the lawsuit by agreeing to sell slots and gates at different airports.

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