Staff attorneys at the Justice Department are preparing to make a recommendation that regulators block a proposed merger between the two largest U.S. cable providers, Comcast Corp. and Time Warner Cable Inc. That could have big implications for Charter Communications Inc., the No. 4 company in the industry.
As part of the merger, Comcast and Time Warner agreed to cede control of 3.9 million Comcast subscribers to Charter, which is based in Stamford, Conn., but formerly made its headquarters in St. Louis and still has about 3,000 employees there.
Comcast outbid Charter last year to buy Time Warner Cable, and Charter announced in March that it planned to purchase Bright House Networks for $10.4 billion.
If the merger between Comcast and Time Warner is blocked, it could also jeopardize Charter’s deal with Bright House.