April 2015

Effort by Japan to Stifle News Media Is Working

Many journalists and political experts say the government of Prime Minister Shinzo Abe is trying to engineer a fundamental shift in the balance of power between his administration and the news media in Japan, using tactics to silence criticism that go beyond anything his predecessors tried and that have frustrated many journalists.

These have included more aggressive complaints to the bosses of critical journalists and commentators and more blatant retaliation against outlets that persist in faulting the administration. At the same time, Prime Minister Abe has tried to win over top media executives and noted journalists with private sushi lunches. He has also appointed a new chairman to the national public broadcaster, NHK, who has declared that the network will not deviate too far from the government’s views. Members of the Abe government have openly hinted at revoking the broadcasting licenses of overly critical networks under a law that requires that TV news reports not intentionally twist facts.

Russian Hackers Read Obama’s Unclassified Emails, Officials Say

Some of President Barack Obama’s e-mail correspondence was swept up by Russian hackers in 2014 in a breach of the White House’s unclassified computer system that was far more intrusive and worrisome than has been publicly acknowledged, according to senior American officials briefed on the investigation.

The hackers, who also got deeply into the State Department’s unclassified system, do not appear to have penetrated closely guarded servers that control the message traffic from Obama’s BlackBerry, which he or an aide carries constantly. But they obtained access to the e-mail archives of people inside the White House, and perhaps some outside, with whom President Obama regularly communicated. From those accounts, they reached e-mails that the President had sent and received, according to officials briefed on the investigation.

Declassified Report Shows Doubts About Value of NSA’s Warrantless Spying

The secrecy surrounding the National Security Agency’s post-9/11 warrantless surveillance and bulk data collection program hampered its effectiveness, and many members of the intelligence community later struggled to identify any specific terrorist attacks it thwarted, a newly declassified document shows.

The document is a lengthy report on a once secret NSA program code-named Stellarwind. The report was a joint project in 2009 by inspectors general for five intelligence and law enforcement agencies, and it was withheld from the public at the time, although a short, unclassified version was made public. Shortly after the terrorist attacks on Sept. 11, 2001, President George W. Bush secretly told the NSA that it could wiretap Americans’ international phone calls and collect bulk data about their phone calls and emails without obeying the Foreign Intelligence Surveillance Act. Over time, Stellarwind’s legal basis evolved, and pieces of it emerged into public view. The report amounts to a detailed history of the program. While significant parts remain classified, it includes some new information.

Comcast Withdraws Purchase Bid, but It Isn’t Going Anywhere

The collapse of the Time Warner Cable deal was not Comcast’s first misstep. In 2004, the company made a surprise $66 billion offer for the Walt Disney Company, which it later withdrew. Shortly before taking over as chief executive, Brian Roberts assisted his father in trying to acquire MediaOne Group, but lost out to AT&T. Now Comcast must chart a path forward after another botched megadeal. For a company like Comcast, taking big and risky bets is part of its business plan. “You only get to be the biggest cable company and largest broadband provider in the country by swinging for the fences,” said James McQuivey, an analyst at Forrester Research. Many believe that no matter how big Comcast gets -- it is already the country’s largest pay-TV operator and the only big company that runs cable systems and owns big content studios -- the Roberts family will not be satisfied.

Comcast’s Week-Long Unraveling of TWC Deal Was Months in the Making

The collapse of Comcast’s plan to buy Time Warner Cable, which played out in public over the course of a week, was months in the making.

When Comcast announced its $45.2 billion bid 14 months ago, Chief Executive Officer Brian Roberts promised the new company would transform how Americans experience entertainment. But opponents stepped up their offensive in recent months. Government officials told executives they worried the new cable giant could stifle competition on the Internet.

While the chances of getting the deal past regulators were narrowing, Comcast executives still held out hope when they met April 22 with officials from the Justice Department and Federal Communications Commission. As regulators set out firm objections to the deal, Comcast envoys quietly took notes. A Justice Department staffer invited them to come back soon to see a more senior antitrust official. Comcast never set up the meeting and Roberts’s audacious bid to gain control of more than 50 percent of US broadband was dead. Descriptions of the unraveling of the Comcast-Time Warner Cable deal, provided by several people familiar with the negotiations, suggest there was no single turning point that doomed the merger of the two biggest US cable companies. Justice Department officials began telling Comcast of their reservations about the deal early in 2015.

For Dodgers fans, the TV shutout continues

For Los Angeles Dodgers fans, the long wait to see games televised again may be headed into extra innings.

An estimated 70% of Los Angeles-area households don't get the SportsNet LA channel that carries Dodgers games. That situation was expected to be corrected if Comcast's planned $45-billion acquisition of Time Warner Cable had succeeded. With that merger officially pronounced dead, the prospects of a deal to carry the games on other cable and satellite providers were as murky as ever. "There's no end in sight," said David Carter, executive director of the USC Marshall Sports Business Institute. "There does not appear to be an easy workaround to get this thing done." With few exceptions, televised Dodgers games can be seen only by customers of Time Warner Cable, which agreed to pay $8.35 billion over 25 years for the rights to distribute the Dodgers-owned SportsNet LA. Its rivals, including DirecTV and Charter Communications, have refused to pay what they say are excessive fees to carry the games. The standoff began in 2014 and has carried over into the current season.

Time Warner Cable chief Robert D. Marcus said he would like to resume talks with other providers. But any kind of resolution is still out of reach as long as pay-TV operators that also include Verizon FiOS, AT&T and Cox Communications continue to bristle at the cost of the channel. Time Warner Cable has asked other cable and satellite TV companies to pay as much as $4.90 a month per subscriber for SportsNet LA, according to industry consulting firm SNL Kagan. Time Warner Cable and Guggenheim Baseball Management, which owns the Dodgers, overestimated consumer interest and underestimated resistance from other pay-TV operators.

The Week The Comcast-Time Warner Cable Deal Died

"Once you get through the hysteria, [this transaction] is pro-consumer, pro-competitive and strongly in the public interest," Comcast Executive Vice President David Cohen told reporters in February 2014 when the nation’s biggest cable TV and broadband service provider announced it would purchase Time Warner Cable, the number 2 provider. Fourteen months later -- hysteria duly subsided -- and it appears regulators may not agree. On the morning of April 24, 2015, Comcast Chairman and CEO Brian L. Roberts said, “Today, we move on. Of course, we would have liked to bring our great products to new cities, but we structured this deal so that if the government didn’t agree, we could walk away.” And, with that, the deal was dead.

With Comcast's announcement, we are and will be seeing lots of post-game analysis on why an army of 128 lobbyists couldn't sell this deal to regulators. Pro Publica's Leticia Miranda pointed to: 1) TV program stifling; 2) Monopoly on broadband Internet service; and 3) Comcast's broken promises in the NBCUniversal transaction. The real issue in Comcast + Time Warner Cable was broadband, just as Om Malik called it when the deal was first announced and GigaOm's Stacey Higginbotham highlighted back in November 2013.

Comcast chief’s last-minute pleas to a former ally fell on deaf ears

On April 20, the chief executive of Comcast made a Hail Mary call to Federal Communications Commission Chairman Tom Wheeler. Brian Roberts told the regulator that his intention to buy Time Warner Cable was for the good for the entire country because it would bring faster Internet speeds to millions. His cable and media company would of course become a behemoth, but Roberts promised to behave and to not use his company’s power to unfairly thwart competitors. The two men knew each other well.

Chairman Wheeler, 69, was the former head of the cable industry’s leading lobbying organization. Roberts, 55, had spent his entire career at Comcast, where he once climbed telephone poles and sold cable subscriptions door-to-door. Both had been major fundraisers for President Barack Obama’s campaigns. But whatever history the two men had was now irrelevant as they talked. Roberts’s plea had come too late. By the time of the phone call, Chairman Wheeler and his staff at the FCC had apparently already decided to block the $45 billion megadeal. On April 23, Comcast executives were summoned to a meeting in a nondescript conference room at the agency to hear the verdict: No amount of concessions would save the deal. Comcast and Time Warner would simply be too big and threatening to an array of competitors, particularly online video providers.

Comcast Trips Over Wheeler Nixon-to-China Moment as FCC Boss

Tom Wheeler came to the Federal Communications Commission in 2013 with a resume featuring stints as the top lobbyist in Washington for both the cable and wireless industries. Consumer advocates weren’t amused. Now, almost two years later, FCC Chairman Wheeler is confounding his former allies and winning praise from public interest groups. He recently pushed for strong net-neutrality rules, and scrutiny by FCC staff helped push Comcast to abandon its yearlong effort to buy Time Warner Cable. “It’s like Nixon going to China,” said Gene Kimmelman, president of the Washington-based policy group Public Knowledge, which opposes the Comcast merger. “He’s used his industry background not to favor his old friends in industry but to take that knowledge and apply it towards strong public interest protections.”

With the cable industry facing its stiffest challenge yet from Internet-based video providers such as Netflix, a central issue for the agency is how to promote innovation as well as protect competition, according to a person familiar with the Comcast case. The FCC’s net neutrality decision and its resistance to the Comcast deal both recognize that the FCC needs to keep up with a world that is changing rapidly. “This is exactly why I thought he was good for the job,” said Andrew Schwartzman, senior counselor at the Georgetown University Law Center’s Institute for Public Representation in Washington. “He’s been around the block, he’s made his money” and he knows the issues, he said.

After Comcast’s failed bid, Charter wants to give Time Warner Cable another try

Apparently, Charter Communications is interested in buying up Time Warner Cable after regulators moved to block Comcast from acquiring the nation's second-largest cable company. Comcast abandoned its pursuit of Time Warner Cable amid federal officials' concerns that the combined company would have too much power over the nascent online streaming video industry. Charter had pursued a takeover of Time Warner Cable in 2013.

It first offered to buy the company for nearly $130 a share. Time Warner officials rebuffed the figure, leading Charter to increase its bid to $132 a share. Then Comcast swooped in with a bid of $158 per share, leading to a merger announcement in February 2014. Nineteen months later, however, the deal fell apart. As recently as February, Charter chief executive Tom Rutledge said he would still be interested in buying Time Warner Cable if it came up again.