Tomahawk, WI 07/28/2014 (Basicsmedia) – Comcast Corporation (NASDAQ:CMCSA) unlike its fierce rivals in the industry has opted to focus on its core business as, Twenty-First Century Fox Inc. (NASDAQ:FOXA), continues courting Time Warner Inc. (NYSE:TWX) for $80 billion. Its strategy goes without saying is working taking into consideration its second-quarter earnings that were solid attributed to a strong boost from the home internet segment.
Impending Time Warner Cable Acquisition
Expansion of revenue streams has been the key play of key players in the industry, seen by Netflix, Inc. (NASDAQ:NFLX)opting to expand its revenue stream through the creation of content rather than delivering it through streaming. Comcast on its part has resorted to retaining its current size and scale as one of the ways of reducing increased operation expenses that come with acquisition or expansion of the entire business portfolio.
Comcast Willing to Expand
Comcast has not shutdown the prospects of carrying out acquisitions. Earlier in the year the company made a strategic move to acquire Time Warner Cable Inc. (NYSE:TWC) for $45.2 billion, a deal that only awaits review by regulators. The transaction if successful will clearly demonstrate the company’s financial muscle. Offering to Buy Time Warner also highlighted the company’s willingness to expand its traditional strengths having grown from being a regional cable company to a household name.
Comcast has always been keen on carrying out strategic deals, back in 2011 it acquired NBCUniversal from General Electric Company (NYSE:GE). Its proposed merger with Time warner will essentially result in a combined company with about two-thirds of the broadband cable market. As of 2013, Comcast had about 21 million internet users with 11 million users for Time Warner. Anti-Trust regulators have raised concerns about the potential merger of the two companies as it will pose increased competition in the industry due to their combined market share.
Just like other companies in the media ecosystem, Comcast Corporation (NASDAQ:CMCSA) is doing all it can to remain ahead of the curve.