(USA Today) Shares of Comcast fell 2.1% Friday after Bloomberg News reported that the Justice Department will likely recommend blocking the cable giant's bid to buy Time Warner Cable and consolidate the nation's two largest cable companies.
Citing anonymous sources, Bloomberg News reported that staff attorneys at the department's antitrust division "are nearing" their decision and could submit their findings by next week.
The Justice Department's no-go recommendation would be a huge setback for the two companies that have bet on the merger to fend off a wide set of challenges facing the industry. In creating a larger cable operator, Comcast is hoping to boost its bargaining leverage against cable networks for content fees, retain higher pricing powers, generate savings to invest more in the rapidly evolving Internet technology and control more markets for the Internet pipes that are increasingly used for video consumption
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