Comcast and Time Warner Cable officials are scheduled to meet with Department of Justice antitrust officials on Wednesday "to discuss potential remedies in hopes of keeping their $45.2 billion merger on track," The Wall Street Journal reported yesterday.
DOJ antitrust lawyers are reportedly close to recommending that the government block the deal. Comcast might be able to save the merger by agreeing to conditions, but the cable company could also walk away from the deal if the government asks for conditions to which it objects.
When announcing the merger in February 2014, Comcast said the acquisition agreement did not include a break-up fee, noting that the lack of one reflected its confidence that the deal would be approved. With the government's merger review now having taken months longer than expected, the absence of a breakup fee would let Comcast abandon the merger without having to compensate Time Warner Cable. (In 2011, AT&T had to pay $3 billion to T-Mobile and then transfer spectrum to the company after the DOJ and FCC sunk a proposed merger between the companies.)
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