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Big changes coming to Michigan cable customers

The merger between Comcast and Time Warner Cable has been making headlines, and some of the impact could be felt by people in Michigan, according to recent reports. Comcast needs to get through certain regulatory approval processes, and that means the company will need to move some of their customers over to a new provider. This will go for cable Internet, cable television and voice services, all of which Comcast provides right now.

At the time, it appears that around 2.5 million people will see the change. Many of them will be from Michigan, though some in southwest Michigan will not be affected.

Basically, Comcast is going to create a different cable company, and they will allow this company to handle the customers in the specified area. They will then spinoff this new company.

The ownership will come from two different directions. The majority ownership will be retained by shareholders who are with Comcast right now, including those who have been shareholders for some time and those who were brought over with the merger from Time Warner Cable. A minority share is going to go to Charter.

Operational support for this new company will come from Charter, as well.

Mergers and acquisitions sometimes cause companies to have to alter their makeup in order to comply with regulations, and these shifts can be quite dramatic. The owners of these companies need to know what will be asked of them if they are considering a merger so that they know what other changes may come in the future. They also have to know the legal ramifications of splitting the company up or merging it with another company in a related field.

Source: The Detroit News, "Comcast plans to spinoff most of Michigan cable operations" Michael Martinez, Apr. 28, 2014

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