Remember how Comcast and Time Warner Cable were stopped from merging because regulators were terrified that the resulting entity would price-gouge consumers and mercilessly f#ck with streaming video services like Netflix?
Good news! That deal is not only still dead but it is now a relic of history.
Charter Communications agreed on Tuesday to buy its much larger rival Time Warner Cable for $56.7 billion in a deal that would transform the company into one of America’s largest cable and broadband operators.
So Charter's cool, right?
The multibillion-dollar offer also marks a culmination for Charter and its main backer, the 74-year-old billionaire media mogul John C. Malone, who will have transformed Charter from a small operator born in St. Louis in 1993 into the country’s second-largest cable company, behind Comcast.
Cool, a real American success story. This John Malone seems like a real defender of the little guy.
Looks like he spoke to the WSJ in 2013 about the state of the cable industry, wonder what he said...
“It would be very nice to see industry get back to that kind of value creation model instead of what we have now … which is in all honesty Snow White and the seven dwarfs.”
Ok. cool, he doesn't like price-gouging, he likes "value creation."
What are his thoughts on net neutrality? Well, he talked to CNBC a few months ago...
"There's no barrier to entry in high speed. It's a question of spending capital. The cable guys who have gone forth and upgraded their networks have a time lead, an edge over some other purveyors who haven't yet spent the money," Malone said.
"The fact that one industry through its investment has got an edge for a period of time over another, that's capitalism to me, that's not antitrust."
Well, that's... "troubling."
Do we know what he thinks about Netflix?
In remarks to Liberty’s annual meeting two weeks ago, which garnered little attention, Mr. Malone laid out his vision for a “world of the future” where consumers could buy “tiers” of broadband connectivity bundled to “various levels” of access to “over the top” video services, sold at a discount.
As part of that, “Reed has to bear in his economic model some of the cost of the capacity that he’s burning,” a reference to Netflix CEO Reed Hastings.
Hey, at least it wasn't Comcast, right?