FCC Unlikely to Bless a Comcast-TWC Deal: Regulator

Any effort by Comcast to acquire Time Warner Cable would face significant hurdles in Washington, according to a Federal Communications Commission official, casting doubt on a cable-industry consolidation scenario that has grabbed Wall Street's attention.

Comcast, the No. 1 cable provider, measured by subscriber numbers, has been considering a bid for the No. 2 player, Time Warner Cable, which is already being pursued by a smaller cable firm, Charter Communications. But Ajit Pai, a commissioner at the Federal Communications Commission, said that the Obama Administration would be unlikely to approve a combination of Comcast and Time Warner Cable. "The Obama Administration has applied greater scrutiny to proposed mergers and acquisitions," he said, citing examples including AT&T's attempted takeover of T-Mobile US. "Precedents like this suggest an outright acquisition by Comcast of Time Warner Cable could face a number of hurdles in the Obama Administration," Commissioner Pai said. "A Republican administration likely would be more inclined to approve a deal." Commissioner Pai said he is inclined to support any deal that "would serve the public interest," doesn't pose competitive harm in the industry and could generate efficiencies.