Feeds

Comcast largest cable firm after AT&T buy

Big Broadband

  • alert
  • submit to reddit

Providing a secure and efficient Helpdesk

ComputerWire: IT Industry Intelligence

Comcast Corp yesterday became the world's largest cable company, following its merger with AT&T Broadband, which was spun off from parent AT&T Corp yesterday as part of the $29.2bn deal. The new Comcast Corp has 21.4 million cable TV subscribers and is worth an estimated $60bn.

The company obtained regulatory clearance for the merger from the US Federal Communications Commission last week. The FCC voted 3-to-1 that the merger was in the public interest as it would allow economies of scale that could speed up the rollout of broadband internet access services.

The merged entity has about 6.3 million digital video subscribers, 3.3 million broadband internet subscribers and 1.3 million cable telephony subscribers. It will offer services in 41 US states and, after 1,700 layoffs, will employ 59,000 people. Its nearest competitor, AOL Time Warner Inc, is about half as big in terms of subscribers.

Critics say the companies have created a powerhouse with the potential to abuse its size. FCC commissioner Michael Copps voted against the merger, saying: "The sheer economic power created by this mega-combination, and the opportunities for abuse that would accompany it, outweigh the very limited public interest benefits."

The stock transaction saw AT&T's shareholders receive 0.3235 Comcast shares for every AT&T share they owned. The combined company is owned 56% by AT&T shareholders, who receive a 66% voting interest. The Roberts family, which owned much of the old Comcast, get one third of the outstanding voting interest.

© ComputerWire

Providing a secure and efficient Helpdesk

More from The Register

next story
Phones 4u slips into administration after EE cuts ties with Brit mobe retailer
More than 5,500 jobs could be axed if rescue mission fails
Driving with an Apple Watch could land you with a £100 FINE
Bad news for tech-addicted fanbois behind the wheel
Phones 4u website DIES as wounded mobe retailer struggles to stay above water
Founder blames 'ruthless network partners' for implosion
Radio hams can encrypt, in emergencies, says Ofcom
Consultation promises new spectrum and hints at relaxed licence conditions
Special pleading against mass surveillance won't help anyone
Protecting journalists alone won't protect their sources
Big Content Australia just blew a big hole in its credibility
AHEDA's research on average content prices did not expose methodology, so appears less than rigourous
Vodafone to buy 140 Phones 4u stores from stricken retailer
887 jobs 'preserved' in the process, says administrator PwC
prev story

Whitepapers

Secure remote control for conventional and virtual desktops
Balancing user privacy and privileged access, in accordance with compliance frameworks and legislation. Evaluating any potential remote control choice.
Intelligent flash storage arrays
Tegile Intelligent Storage Arrays with IntelliFlash helps IT boost storage utilization and effciency while delivering unmatched storage savings and performance.
WIN a very cool portable ZX Spectrum
Win a one-off portable Spectrum built by legendary hardware hacker Ben Heck
High Performance for All
While HPC is not new, it has traditionally been seen as a specialist area – is it now geared up to meet more mainstream requirements?
Beginner's guide to SSL certificates
De-mystify the technology involved and give you the information you need to make the best decision when considering your online security options.