Comcast, Time Warner Defend Merger Proposal - Update

(RTTNews) - Comcast Corp. (CMCSA, CMCSK) and Time Warner Cable Inc. (TWC) on Tuesday lashed out at critics of their proposed $45 billion merger deal, saying a combination of the two cable giants would definitely benefit consumers.

The staunch defense of the deal, announced in Feb, comes as Comcast and Time Warner filed reply comments in the Federal Communications Commission's consideration of the proposed merger.

The two companies affirmed that the deal is pro-consumer, pro-competitive, and in the public interest because of the increased investment, innovation, and competition the deal entails.

The FCC and Justice Department are against the merger proposal, citing harm to consumer interest and competition. Others against the deal include companies such as Netflix, Discovery and Dish Network.

Meanwhile, Comcast also defended its transaction with Charter Communications Inc (CHTR) that is part of the merger proposal with Time Warner. The deal with Charter envisages the spin off of a new cable company by Comcast and swapping of customers between Comcast and Charter.

A merger between Comcast and Time Warner Cable would create a company that would control a third of the cable market. This is despite divesting about four million Time Warner Cable subscribers as part of the deal.

Comcast stock is trading at $54.50, down $0.47 or 0.86%, on a volume of 7 million shares on the Nasdaq.