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Gobble away! Charter-Time Warner Cable merger OK'd by FCC

Anonymous Coward
Anonymous Coward

I'm guessing my rates (Charter) are now going to go up so they can pay for this without affecting profit and exec bonuses.

They most certainly are. Deal premium, costs and fiddles for preferred shareholders are at least $8bn. Over the combined company's customers they need to extract about $350 extra from each customer (plus interest) to make it work. And that's before the over-valued nature of the stock in the first place. Net book assets are about $16bn, so the $55bn paid means a goodwill figure for the merged company of around $40bn. That's $1,700 per customer, to be recovered by hook or by crook over the next few years.

I'm not sure why regulators ignore the simple reality that mergers deliver poor outcomes for consumers. Are they corrupt, or just incompetent?

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