The Comcast merger with Time Warner isn't a sure thing

As the Federal Communications Commission prepares to rule on the Comcast-Time Warner Cable merger in late March, investors seem to think the deal may fall through. Time Warner's stock has been trading at prices below the amount Comcast has offered to pay. "There’s a lot changing in how people consume media," says Amy Yong, an analyst with Macquarie Group. "And that’s why it’s become a lot more contentious than a lot of people originally anticipated." She means cord-cutting -- getting video on the Internet instead of over cable TV -- has started to look more like a reality.

That prospect raises new questions about Comcast and Time-Warner, companies that sell both cable TV and broadband services. As broadband providers, might they choke out cord-cutting services to protect their TV business? The FCC has started looking at new regulations to prevent just that, including a proposal to regulate broadband services as a utility. "The actions that we've seen may suggest a mindset that is more concerned about competition in broadband, and simply less hospitable to further mergers in this sector," says Kevin Werbach, a Wharton School professor and former counsel to the FCC. The FCC's concern might spell trouble for the Comcast merger.