Comcast/TWC To Boost Industry Profit Potential

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Comcast/TWC To Boost Industry Profit Potential

by Wochit 0:47 mins

Comcast/TWC To Boost Industry Profit Potential

by Wochit 0:47 mins

Comcast's proposed merger with Time Warner Cable will boost the cable industry’s profit potential. That’s because the deal, if it is approved will tweak each of the five forces that drive profitability in the industry that HBS professor Michael Porter first identified. And those tweaks will enhance Comcast’s long-term cash flows. Comcast CEO Brian Roberts told Reuters that he was “Confident about getting the green light from regulators as the two companies plan to divest 3 million subscribers, so that their combined customer base of 30 million would represent just under 30% of the U.S. pay television video market. Roberts added that no decisions have been made on which markets to sell.

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