DISH Continues Bid To Block Comcast-TWC Merger; FCC Review Also Delayed

(RTTNews) - DISH Network Corp. (DISH) on Monday continued its bid to block the proposed $45 billion merger between cable television giants Comcast Corp. (CMCSA, CMCSK) and Time Warner Cable, Inc. (TWC).

DISH has filed a reply in support of petitions for the Federal Communications Commission or FCC, to deny the merger between Comcast, the largest cable operator in the U.S., and Time Warner Cable, the second largest cable operator in the U.S.

DISH has cited in its reply the irreparable harm to competition and consumers, and no discernible benefits, from the proposed merger between the top two cable companies in the U.S. It added that the merger's claimed benefits, if any, cannot outweigh the merger's harms.

"Everyone who likes to watch high-quality online video has particular reason to worry about the proposed merger. More than 54 percent of the country's high-speed broadband connections would be controlled by the combined company, and all online video distributors would be at the mercy of Comcast-TWC," said Jeff Blum, senior vice president and deputy general counsel for DISH.

Separately, the FCC shot out a letter to the companies claiming that Time Warner Cable had withheld and only submitted the more than 7,000 responsive documents on December 9 and 10 that were requested by the FCC in a letter dated August 21, with due date of September 11.

During the week ended December 15, the FCC also found that Time Warner Cable has not produced 31,000 responsive documents due to vendor error, and is to be produced on December 30.

The FCC noted that these delays had slowed down the commission's review of the Comcast-Time Warner Cable merger as well as Comcast's side deal with its smaller rival Charter Communications, Inc. (CHTR). With these additional documents being submitted, the commission would have to reopen the review that was thought to have been completed.

Taking these delays into account, the FCC said it will stop the informal 180-day review period clock for three weeks until January 12, 2015, when it will be restarted.

Comcast agreed in mid-February to acquire Time Warner Cable for $45.2 billion in an all-stock friendly merger deal. The deal was originally expected to close in early 2015. Comcast trumped a takeover attempt made for Time Warner Cable earlier by Charter Communications, the fourth-largest cable operator in the U.S.

Meanwhile, Time Warner Cable stockholders had on October 9 overwhelmingly approved the merger with more than 99 percent of votes cast in favor of the deal. A day earlier, more than 99 percent of Comcast shareholders voted in support of its proposal to issue 2.875 shares of Comcast Class A common stock for every one share of Time Warner Cable (TWC) common stock at a special meeting of shareholders.

CMCSA closed Monday's regular trading session at $57.22, up $0.05 on a volume of 19.18 million shares, and TWC closed at $150.07, up $0.76 or 0.51% on a volume of 4.69 million shares.