Report: Comcast, Time Warner Cable Deal on Thin Ice

It's not looking good for the merger of Time Warner Cable and Comcast.

According to a Friday report from Bloomberg, the Justice Department's antitrust department might recommend rejecting the deal "out of concerns that consumers would be harmed."

Those attorneys could submit their recommendation by next week, but the final decision is made by senior officials, Bloomberg said.

In Feb. 2014, Comcast announced it would acquire Time Warner Cable for $45.2 billion. In announcing the deal, Comcast Corporation CEO Brian Roberts insisted that the two cable giants operate in completely different markets and do not overlap, so the deal should not run afoul of regulators.

But according to Bloomberg, the DOJ is concerned that the combined firm could hurt video streaming services like Netflix and Sling TV, among other things.

During a congressional hearing last year, senators from both sides of the aisle questioned why the deal was necessary and whether or not it would lead to price hikes and adversely impact smaller, independent programmers, some of whom voiced their opposition to the deal at that hearing.

The FCC must also approve the deal, but it's also not looking good there, either. According to Bloomberg sources, the FCC has not been negotiating with Comcast on terms that would make the deal more favorable, which doesn't bode well.

The deal does not include a break-up fee, Comcast said last year. Usually, deals of this nature include a fee that is paid to the acquired company if the deal goes south. In the failed AT&T/T-Mobile merger, for example, T-Mobile got a nice chunk of change when AT&T ditched plans to buy the carrier, which it has used to make some of its "un-carrier" moves.

Until then, Comcast will likely continue lobbying for the merger. In a blog post earlier this week, EVP David L. Cohen argued that "our proposed transaction with Time Warner Cable will allow us to increase our impact, distributing more content, including more diverse and independent content, for consumers."

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He pointed to the company's 2011 acquisition of NBCUniversal, and the investments it has made since then. "While Comcast's business has grown and changed over the years, our mission remains the same – to expand access to the best content available," he wrote. "Teaming up with TWC will let us do just that, expanding the reach of the creative community and allowing more viewers to enjoy the golden age of entertainment."

One person who doesn't agree? PCMag's Sascha Segan. For his take, check out Comcast's Epic Broadband BS and Big Surprise: Comcast Astroturfing for TWC Merger.

UPDATE: The Wall Street Journal reported Sunday that Comcast and TWC will sit down with the DOJ on Wednesday in an effort to hash out concessions that might save the merger.