Comcast merger roadblock unplugs Time Warner Cable shares

Shares of Time Warner Cable took a dive in pre-market trading Thursday as regulators threaten the $45.2 billion marriage with Comcast amid growing antitrust concerns.

Both the Department of Justice and now the Federal Communications Commission (FCC) have reservations about the merger, which would combine the No. 1 U.S. cable company Comcast with the No. 2 player Time Warner Cable. The general story line is the marriage of the two behemoths would not be in the best interest of consumers, as the combined company would hold too much clout in the cable TV business and broadband space.

Today's early selloff in Time Warner Cable (TWC) shares follows a report late Wednesday night from The Wall Street Journal that said the FCC staff is "recommending a hearing" on the proposed merger, a move that could block the combination of the two cable giants. The FCC move is viewed as a potential major setback and raises the odds of the deal not getting approved.

In pre-market trading Time Warner Cable shares were down $4.64, or 3.1%, according to FactSet. Comcast (CMCSA) shares were less impacted, and were off just 7 cents, or 0.12%.