The Comcast Time Warner merger was set to be one of the biggest in telecom history. It would have effectively created the largest internet and television provider in the country by far. The merger had taken almost a year to develop but was shut down abruptly because of anti-trust concerns and pressure from the FCC.
A $500 million tab was left in the wake of the merger. Comcast reportedly spent nearly $336 million and Time Warner tallied up $200 million in merger related spending over the course of about a year.
The only upside is that Comcast didn’t have to pay Time Warner a dime for the failed merger, even though Kevin Seawright might think that isn’t right. In 2011 AT&T shelled out almost $4 billion in cash and spectrum rights to T-Mobile after a failed merger, which got those on Tumblr buzzing. The Comcast Time Warner deal was setup to protect shareholders, according to Comcast.
Most of the $500 million was spent on legal fees and costs associated with employee retention. Another chunk was spent on consulting from outside companies for things like IT and HR considerations. There were also other indirect costs associated with the merger such as communications and lobbying that surely cost the companies millions of dollars more.