Time Warner Cable Comcast Case Study

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A Project Report on Proposed Merger of Time Warner Cable-Comcast Submitted by Group 10 | Section B | PGP 17 Madhuri | Debopam | Mayank | Nikhil Executive Summary The objective of our project was to analyze one of the most talked about deals in the history of M&A which combines the largest cable company in the world, Comcast, with the second largest company in US, Time Warner Cable. This deal is possibly the largest media deal and it has caught great attention from media, political fraternity and customers due to multiple reasons. Our scope included in- depth analysis of business model of these two firms, valuation and possible synergies arising out of the deal, and to understand the Anti-Trust issues involved in the deal. For…show more content…
This is also proved by the reduced EPS to Comcast’s existing shareholders. The bulk of the value from this deal is going to TWC’s shareholders. This could possibly explain why Comcast’s share price dropped upon the announcement of the deal, while TWC’s rose 3. With delays in the merger process due to lawsuits, the transaction costs add on in the form of higher cost of acquisition 4. Finally, irrespective of what the merged entity does, it will always be under the scrutiny of lawmakers and regulators as they have already seen this deal as a competition-deterrent Based on our valuation and observations, we do not see this deal as much value adding, either to the companies or to the customers. However, if TWC and Comcast could give a firm assurance to the regulators that they would not indulge in any anti-competition activities, and improve their quality of service in the future, then surely this deal has a bright future. Calculations The calculations are in the attached excel…show more content…
Antitrust issues abound as Comcast explains Time Warner Cable Deal in the Senate. Gigaom. [Weblog] Available from: https://gigaom.com/ [Accessed 12th Nov 2014]. [4] Warren Gimes. Competition Will Not Survive The Comcast-Time Warner Merger. Forbes. [Online] Feb 27 2014. Available from: http://www.forbes.com/ [Accessed 12th Nov 2014]. [5] David Goldman. Comcast deal to face antitrust hurdles. CNN Money. [Online] Feb 13 2014. Available from: http://money.cnn.com/ [Accessed 12th Nov 2014]. [6] Time Warner Cable Inc. Form 10-K. [Online] 2014. Available from: http://timewarnercable.q4cdn.com/4df09cbc-cdb1-44ad-b461-b192c7f32a61.pdf [Accessed 12th Nov 2014]. [7] Comcast. Form 10-K. [Online] 2014. Available from: http://files.shareholder.com/downloads/CMCSA/3633798083x0xS1193125-14-47522/1166691/filing.pdf [Accessed 12th Nov 2014]. [8] Comcast. COMCAST AND TIME WARNER CABLE TRANSACTION FACT SHEET. [Online] 2014. Available from: http://corporate.comcast.com/images/Transaction-Fact-Sheet-2-13-14.pdf [Accessed 12th Nov 2014]. [9] Alex Sherman. Comcast Agrees to Buy Time Warner Cable for $45.2 Billion. Bloomberg. [Online] Feb 14 2014. Available from: http://www.bloomberg.com/ [Accessed 12th Nov 2014].
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