Last month Comcast announced its plans to merge with Time Warner Cable, and internet subscribers may have to choose Comcast as their broadband provider even if they don’t want cable in the near future. With rising cable rates, the merger is stoking fears and outrage among the public, and politicians like Senator Al Franken. The deal has yet to be finalized and the FCC may instruct Comcast and Time-Warner to pump their brakes before merging. If the deal succeeds, however, the nation’s two largest cable and broadband providers are sure to become a behemoth on the information superhighway.
While profit is a big motive for acquisitions and takeovers, companies also try to take over close members of their social networks to reduce competition. Monopolies and oligopolies are especially likely in industries with only a few major players and close ties.
- Donald Palmer, Xueguang Zhou, Brad M. Barber, and Yasemin Soysal. 1995. “The Friendly and Predatory Acquisition of Large U.S. Corporations in the 1960s: The Other Contested Terrain,” American Sociological Review 60(4): 469-499.
- Marshall Barron Clinard, Peter C. Yeager, and Ruth Blackburn Clinard. 1980. Corporate Crime. New York: Free Press
What does this mean for women, people of color, and low income communities? Rising prices for internet access would expand an already-large “digital divide” in who can use the web and who gets represented on it.
- Eszter Hargittai. 2004. “Internet Access and Use in Context.” New Media Society 6(1): 137-143.
Also, check out Eszter Hargittai’s “Office Hours” interview where she discusses the expanding gaps and inequalities in the level of internet skills possessed by so-called “digital natives.”
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