Analyst: A Comcast-Time Warner Cable Merger Would Be Justified
Picture this: a mega merger of Comcast and Time Warner Cable. A proposal to merge the two largest domestic operators — which is sure to alarm uneasy cable TV subscribers and federal regulators — is the brainchild of Citigroup analyst Jason Bazinet. His exhaustive analysis in a new client report concludes that the controversial move could yield $2.7 billion in annual cost savings and $12 billion in synergies by combining the companies’ 78 million customers. Although Comcast and Time Warner tell Bazinet no such discussions are underway, the veteran cable analyst insists a merger is “the most intelligent transaction” they could pursue in an increasingly competitive digital market. Theoretically, Bazinet could be right. But the track record on successful big…
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