Comcast and Time Warner Get FCC Approval for Adelphia Acquisition

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Comcast and Time Warner Get FCC Approval for Adelphia Acquisition

8:00 am on July 15, 2006 | Category: Business, Television, Regulation

The U.S. Federal Communications Commission has officially given the green light to Time Warner Cable and the Comcast Corporation, for their $17 billion purchase of the bankrupt Adelphia Communications.

FCC members voted 4-to-1 in favor of the deal, but did decide to impose some restrictions. Neither Philadelphia-based Comcast or New York-based Time Warner will be allowed to engage in any tactics that would make regional sports programming unavailable to rivals, including satellite television providers.

Comcast’s own SportsNet channel, however, will continue to be exempt from the rule, and will not be accessible to DirecTV or Dish Network subscribers. SportsNet televises the games of several Philadelphia sports teams including the 76ers, Phillies, and Flyers.

The FCC’s one dissenting member, commissioner Michael J. Copps, claimed that the decision was all about “big media getting bigger with consumers holding the bag.”

“Residents of Philadelphia are still stuck without competitive choice,” Mr. Copps insisted, calling the SportsNet exemption “inexplicable.”

When it comes down to it, however, it is in the FCC’s best interests to secure a deal, and make reasonable compromises. Comcast and Time Warner are willing to purchase the remains of their bankrupt cable rival, and jeopardizing such a deal would be anything but positive for customers.