Comcast in the United States

In February 2014, Comcast Corporation, the largest cable television operator, announced that it was acquiring Time Warner Cable, Inc., which is the second largest cable television operator. In May 2014, AT&T announced that it was acquiring DIRECTV, the largest direct-to-home satellite provider. Both transactions were subject to regulatory approvals of the Department of Justice and the FCC.

In January 2011, Comcast and General Electric Company (“GE”), the parent of NBC Universal (“NBCU”) consummated a joint venture in which the programming assets of Comcast and NBCU were combined and Comcast acquired a controlling interest in NBCU. The FCC approved the joint venture in January 2011. In 2013, Comcast acquired GE’s remaining interest in NBCU. Comcast’s control and ownership of NBCU could impact our NBC-affiliated television stations. We currently have a network affiliation agreement with NBC Universal for two of our television stations and a retransmission consent agreement with Comcast for distribution of several of our television stations. Comcast’s control and ownership of NBCU could reduce our ability to negotiate favorable terms under future network affiliation and cable carriage agreements. In addition, Comcast could provide popular NBC sports and entertainment programming on additional outlets including co-owned cable channels and the Internet. Comcast’s ownership of NBCU may affect the economic incentives that currently form the basis of the network/affiliate relationship, and, over time, may result in the evolution of the network/affiliate relationship so that local affiliates become less important to the network. The FCC Order approving the 2011 joint venture included certain conditions, many of which were contained in private agreements between Comcast and the major-network affiliate associations, to mitigate these concerns. Most of these conditions expire in 2017, although in reviewing the proposed merger between Comcast and Time Warner Cable, the FCC could decide to extend certain conditions and/or impose new conditions.