Disney (DIS), CBS (CBS) Questioned by DoJ in Comcast, Time Warner Cable (TWC) Merger
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Disney (NYSE: DIS) and CBS (NYSE: CBS) are on watch early Friday following reports that the two companies are being asked for information with respect to the merger of Time Warner Cable (NYSE: TWC) and Comcast (Nasdaq: CMCSA).
Bloomberg noted that the U.S. Department of Justice talked with both companies over whether or not the cable industry merger would make the segment too anticompetitive.
None of the companies has opposed the merger, though they have asked the U.S. to ensure that the merged entity won't favor its own content over theirs.
Another item being probed is most-favored-nation clauses, which stipulate that pay-TV operators, such as Comcast, can match subsequent deals networks get for their programming for at least two years.
Opposing the deal are Netflix (Nasdaq: NFLX) and DISH Networks (Nasdaq; DISH), which argue that Comcast is already dominant enough to capture unprecedented fees.
Shares of Disney and CBS are flat in early trading.
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