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Why Amazon will Buy Comcast

Why Amazon will Buy Comcast

The con­cept of world dom­i­na­tion used to be rel­e­gat­ed to sci­ence fic­tion movies how­ev­er Ama­zon may yet become one of the first to make it a real­i­ty. Their recent addi­tion of the Stream­ing Part­ners pro­gram could be the start of Ama­zon as the world’s first glob­al OTT (over the top) pro­gram­ming provider. With 83.5% of Face­book users and 79% of Twit­ter users com­ing from out­side the US, com­pa­nies today must be glob­al­ly focused to tru­ly com­pete and grow.   Com­cast busi­ness is lim­it­ed to the US.  With cable sys­tems pass­ing about 44% of all US homes and 22 mil­lion sub­scribers it has a strong pres­ence but only in the US. Ama­zon is a glob­al com­pa­ny; Accord­ing to Mark Mahaney, ana­lyst at RBC Cap­i­tal Mar­kets, 37% of its 80 mil­lion Prime sub­scribers are from out­side the US and is grow­ing quick­ly. But Why Should Ama­zon buy Com­cast? Amazon’s for­ay into OTT is the pre­cur­sor to the sep­a­ra­tion of the pro­gram­ming plat­form from the wired cable.  I believe that some­time in the next 3 to 5 years most cable com­pa­nies will sell broad­band access only and the pro­gram offer­ings will be spun off into sep­a­rate com­pa­nies which will have lots of com­pe­ti­tion…

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Will Comcast Actually Buy Time Warner Cable or Will this be Charter’s Wake up Call?

Will Comcast Actually Buy Time Warner Cable or Will this be Charter's Wake up Call?

I don’t believe this deal will hap­pen the way its cur­rent­ly struc­tured and here’s why. First off, there are too many volatile vari­ables in this deal in its cur­rent form;  the all stock price, soft­en­ing equi­ties mar­ket and oth­er very moti­vat­ed buy­ers in the mar­ket. I believe that this is only the first move in a larg­er plan. Time Warn­er Cable is uti­liz­ing a very smart strat­e­gy to max­i­mize the sale price for the com­pa­ny; wit­ness that Rob Mar­cus, the CEO, is a for­mer Merg­ers and Acqui­si­tion attor­ney. So the bat­tle for Time Warn­er Cable has come to an end, or has it? Yes­ter­day Com­cast announced a $45.2 bil­lion dol­lar deal to pur­chase Time Warn­er Cable, rep­re­sent­ing a share pur­chase price of $158.82 per share. This is a sig­nif­i­cant increase from Char­ter Cable’s pre­vi­ous offers of $132.50 per share. But there is a big dif­fer­ence. Char­ter’s offer was sub­stan­tial­ly cash and Com­cast’s is com­plete­ly a stock deal. Also, we’re now talk­ing about a major anti-trust review. Even with a sell off of 3 mil­lion sub­scribers Com­cast would still con­trol 30% of the indus­try nation­wide. Giv­en the lack of com­pe­ti­tion in each mar­ket this does not sound like a slam dunk. A year ago Com­cast…

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