Comcast Spikes $45bn Bid For Time Warner Cable

Comcast Corp has dropped its $45bn (£29.7bn) bid for Time Warner Cable (Xetra: T3W1.DE - news) after US regulators said the deal would create an unfair market.

The proposed merger of the two largest US cable companies would have put more than 32 million television and internet subscribers under the same roof.

Critics of the proposed deal, including competitors, consumer groups and politicians said it would lead to higher prices and less choice.

"The proposed merger would have posed an unacceptable risk to competition and innovation, including to the ability of online video providers to reach and serve consumers," Federal Communications Commission Chairman Tom Wheeler said in a statement.

Comcast chairman and CEO Brian Roberts said both sides were always prepared to pull the plug.

"We always structured this deal in a way that would enable us to walk away," he said in an interview with CNBC on Friday.

"We have to live with it, and respect that, and move on."

Among the biggest concerns from opponents of the deal was that it would undermine the streaming video industry that is reshaping TV.

Both Netflix and satellite service provider Dish Network (NasdaqGS: DISH - news) , which distributes the web-based SlingTV service, opposed the deal.

Competitors feared the new cable behemoth could require onerous payments from new online-only video providers in return for connecting to its network.

US Attorney General Eric Holder hailed the decision to abandon the merger as a "victory" for providers of content and streaming services.

"The companies' decision to abandon this deal is the best outcome for American consumers," Mr Holder said in a Justice Department release.

"I commend the Antitrust attorneys and investigators whose outstanding work led to this outcome, and I know that the Department of Justice will continue to fight for fair access and free competition in every industry and every market."

Comcast is the largest video, broadband and phone provider in the US with more than 21 million TV subscribers.

The Philadelphia-based company owns a host of cable channels, including Syfy, E! and CNBC, as well as Universal Pictures and the Universal Orlando theme park.

Time Warner Cable, which was spun off from the parent entertainment company Time Warner (Xetra: AOL1.DE - news) in 2009, has about 11 million TV customers.