U.S. States Probe Comcast's Plan to Merge With Time Warner Cable

Mar 19, 2014 03:44 PM EDT | Matt Mercuro

Florida and other U.S. states have announced they will join the Justice Department in its attempt to determine if Comcast's plan to merge with Time Warner Cable is legal under U.S. antitrust law, according to Reuters.

"We are part of a multistate group reviewing the proposed transaction along with the U.S. DOJ Antitrust Division," the Florida attorney general's office said, according to Reuters.

The other states that are teaming up with the Justice Department have not been confirmed yet.

Indiana officials are currently looking at the deal to figure out "the potential impact in Indiana," according to Reuters.

Pennsylvania, where Comcast is headquartered, is currently busy "reviewing the case independently," said Joe Peters, a spokesman for the state's attorney general's office.

The deal is worth approximately $45.2 billion, according to Reuters.

Comcast, which is the No. 1 U.S. cable provider, has yet to comment on the states' review of the proposed deal. Its shares dropped to just over 1 percent, trading at around $49.68 right before midday.

Back on Feb. 13, Comcast, said it had agreed to acquire Time Warner Cable.

The deal has received its fair share of criticism from lawmakers and consumer groups around the country that feel there are already not enough options for Americans to choose from when signing up for broadband or cable service.

Comcast has publicly stated that it feels a combination would not reduce competition, since the two providers "do not compete in any markets," according to Reuters.

The combined customer base of approximately 30 million would represent around 30 percent of the U.S. pay television market.

It would also represent around one-third of the high-speed Internet market.

Shares of Time Warner Cable were down 0.4 percent at $135.98 near midday.

The Federal Communications Commission must also approve the deal before it can close.

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