By Shalini Ramachandran
DirecTV Chief Executive Mike White on Thursday voiced his
opposition to Comcast Corp.'s proposed takeover of Time Warner
Cable Inc., saying the deal would create "unprecedented media
concentration in one company."
Speaking on an earnings conference call, Mr. White said the
combined cable giant would have an "effective monopoly" in
broadband services in up to two-thirds of the U.S. and greater
leverage over TV programmers that supply content.
Regulators will be scrutinizing the potential impact the merger
will have on competition. Comcast argues that it faces stiff
competition from satellite companies like DirecTV and phone
companies like Verizon Communications Inc. in the pay TV market,
which has stagnated in recent years as the industry matures.
DirecTV is the No. 2 pay TV provider in the U.S. behind Comcast.
Time Warner Cable is No. 4.
The blockbuster cable deal, announced last week, has renewed
speculation on Wall Street that DirecTV and Dish Network Corp., the
second-biggest satellite TV provider, could seek to pursue a
combination. The two satellite firms attempted a merger more than a
decade ago that was blocked by regulators.
"Consolidation in the industry is the only way" from a
"marketplace standpoint" to impede the rise of programming costs,
Mr. White said. He said DirecTV is "looking at all options"
regarding "what else we can do to further strengthen our
competitive position."
Write to Shalini Ramachandran at
shalini.ramachandran@wsj.com
Order free Annual Report for Comcast Corp.
Visit http://djnweurope.ar.wilink.com/?ticker=US20030N1019 or
call +44 (0)208 391 6028
Order free Annual Report for Comcast Corp.
Visit http://djnweurope.ar.wilink.com/?ticker=US20030N2009 or
call +44 (0)208 391 6028
Order free Annual Report for DISH Network Corp.
Visit http://djnweurope.ar.wilink.com/?ticker=US25470M1099 or
call +44 (0)208 391 6028
Order free Annual Report for DIRECTV
Visit http://djnweurope.ar.wilink.com/?ticker=US25490A3095 or
call +44 (0)208 391 6028
Order free Annual Report for Time Warner Cable, Inc.
Visit http://djnweurope.ar.wilink.com/?ticker=US88732J2078 or
call +44 (0)208 391 6028
Order free Annual Report for Verizon Communications, Inc.
Visit http://djnweurope.ar.wilink.com/?ticker=US92343V1044 or
call +44 (0)208 391 6028
Subscribe to WSJ: http://online.wsj.com?mod=djnwires