Why Some Comcast/TWC Deal Concerns Don't Matter: Analysts

In a note to investors, BernsteinResearch says it still expects the Comcast/Time Warner Cable merger to be approved by the Federal Communications Commission -- with conditions -- and close by the end of first quarter 2015 or the beginning of the second quarter.

While it notes that sentiment has become more negative on the deal following the FCC's stopping of the shot clock on the transaction, it suggests that and other concerns of investors are overstated. The BernsteinResearch team, led by senior analyst Paul de Sa, points out that procedural disputes like those that stopped the clock -- access to contracts, incomplete filings -- are typical in large and controversial mergers. They point out that the clock was stopped once for the Comcast/NBCU merger and twice for the Verizon/SpectrumCo deal (both of which were approved). They also downplay the concerns that the FCC may establish a speed threshold for the Internet access marketplace, arguing that the competitive marketplace is local, not national, and offered speeds are not relevant. They say proving market power in interconnection would be tough.