Time Warner and Comcast Merger Essay Example | Topics and Well Written Essays - 1000 words

Time Warner and Comcast Merger - Essay ExampleThis paper amplylights that the main impediment of this merger consort to the U.S regulators is the fear that the company would create a business that is well aw ar that clients have no some other choices than to the poor provision of customer service as well as increased rates shrewd there are no options out there. In any case, this is one of the fundamental concerns with any presidential term of a monopoly where the US regulators bequeath carry the ultimate decision. This research study outlines that the strategy taken is a well conceived strategy which creates a moat or what is known as barriers to entry. The reason for their opinion are based on barriers to entry which entail competitive advantages such as economies to scale and the net cyberspace effects, captivity of customers, proprietary technology as well as government advocacy. This situation is not an virgule as some people may explain but a strategic step created to p ass on economies of scale and achieve customer captivity. Since the merger has the objective of saving on costs for the customers of both firms, this will make the barriers to entry very high.The situation cannot be termed as being created to destroy value through with(predicate) acquisitions. The value of the companies or competition cannot be destroyed. If the internet providers were to be left on their own, they would charge high prices given that they experience no oversight or face competition. The merger has the intentions of providing the customers with more efficient services.