Comcast’s plan to divest itself of 3 million subscribers, which it hopes will help it win approval of a merger with Time Warner Cable, could result in the creation of a new cable company. Rather than selling off territories to existing cable companies, Comcast is considering an option to “[spin] them off in a new publicly traded company,” Bloomberg reported , citing anonymous sources.”Regulators may push for the spin-out because it would create a new competitor,” Bloomberg wrote. “A new company formed in such a way would be the fourth-largest US cable company by subscribers, trailing the merged Comcast-Time Warner Cable, Cox Communications Inc,. and Charter Communications Inc.” Creating a new company with those customers wouldn’t result in more choices for consumers in individual markets. Despite being the two largest cable companies in the US, Comcast and Time Warner Cable don’t compete against each other in any regional territory. Read 2 remaining paragraphs | Comments
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Comcast subscriber spinoff could create a new cable company
According to an early report from Bloomberg News reporter Sarah Frier, Facebook is set to buy WhatsApp for $16 billion. An SEC filing confirms the acquisition for $4 billion in cash to WhatsApp’s security holders, along with $12 billion in Facebook stock and an additional $3 billion in Facebook stock that will vest over four years. WhatsApp has been one of a handful of booming messaging apps that has grown especially large in the last year (GroupMe, WeChat, Kik, and Line are others). In December, the app was reported to have over 400 million monthly users, and Facebook now reports that the service has 450 million. Meanwhile, Facebook maintains roughly 1.2 billion as of last October. Facebook has yet to release usage numbers for either its messaging feature on the whole or its dedicated Messenger app. The Verge noted in December that it was “telling” that few other messaging apps release their usage numbers like WhatsApp does, which suggests its user base dwarfs its competitors. Read 2 remaining paragraphs | Comments