The Law Office of Lynnette Ariathurai A Professional Corporation

Comcast challenges proposed business merger terms in California

The American economic system is primarily based upon free market principles. However, this does not mean a company can do whatever it wants. There are various laws that regulate what companies are allowed to do. This is what Comcast is facing in its proposed business merger with Time Warner Cable in California.

The cable provider is attempting to acquire its rival Time Warner Cable in a $45.2 billion deal. However, Comcast first requires approval from state governments in order to transfer licenses issued to Time Warner Cable to Comcast. In February, an administrative law judge in California has proposed terms of approval for the merger, including a list of conditions which must be met by Comcast. The California Public Utilities Commission (CPUC) will now have to reach a decision regarding the proposed conditions.

Comcast is not completely happy with the list of proposed conditions. The company has since taken legal action in order to oppose many conditions and terms proposed by the administrative law judge. Comcast and Time Warner Cable explained their positions and opposition to many of the terms in a joint filing. The two companies are hoping to reach some type of compromise regarding these merger issues.

These types of situations can occur with regard to any proposed business merger in California. This is why it is important to be armed with the most up-to-date and complete knowledge of applicable laws and procedures. Having the support and assistance of an experienced business and commercial law attorney is a crucial component when it becomes necessary to take legal action to convince regulators to approve an acquisition.

Source:, "Comcast has tons of objections to California's approval of TWC merger", Jon Brodkin, March 6, 2015

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