NEW YORK (TheStreet) -- Comcast (CMCSA) is facing pushback from state legislatures concerning its proposed merger with Time Warner Cable (TWC). Comcast was up 0.8% at $50.30 in early trading Thursday.
Florida, along with other states, announced that it was joining the Justice Department investigation into whether the merger of two of the top four cable companies in the U.S. was legal under anti-trust laws. The proposed $45.2 billion deal would allow Comcast to boast a subscriber base of 30 million Americans while also making it the internet provider to a third of the country.
State opposition includes new legislation in New York State that could hurt the merger as reported by the New York Post. New York legislators are discussing plans to amend rules to give its cable regulators more power and would require Comcast to prove to the New York State Public Service Commission that the merger was in the best interest of the people of the state.
TheStreet Ratings team rates COMCAST CORP as a Buy with a ratings score of A+. TheStreet Ratings Team has this to say about their recommendation:
"We rate COMCAST CORP (CMCSA) a BUY. This is based on the convergence of positive investment measures, which should help this stock outperform the majority of stocks that we rate. The company's strengths can be seen in multiple areas, such as its revenue growth, solid stock price performance, growth in earnings per share, increase in net income and attractive valuation levels. We feel these strengths outweigh the fact that the company shows weak operating cash flow."