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(20 points) In 2014, Comcast corporation announced their intention to acquire Time Warner Cable. The two…
(20 points) In 2014, Comcast corporation announced their intention to acquire Time Warner Cable. The two companies argued that the merger would increase their overall scale, allowing the company to become more competitive, improve customer service quality, and quicken innovation. The companies also argued that the deal would increase competition in the United States’ cable television and internet markets, as they planned to divest subscribers to Charter Communications to regulate the market share of their combined operation. In 2016, Marriott International announces its plan to acquire Starwood Hotel & Resorts, which would make them the largest hotel chain in the market which now offers the most comprehensive portfolio of brands including leading lifestyle brands, a significant global footprint, and leadership in the luxury and select-service tiers as well as the convention and resort segment.
Explain the similarities and differences between the two merger proposals above and why the US court approved of one deal (Marriott and Starwood in the hotel and lodging industry) and was opposed to the other(Time Warner and Comcast in the media and internet broadband services industry). Do you agree or disagree with the court’s decision? (10 points)