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Comcast is dropping its $45 billion bid to merge with Time Warner Cable, amid reports that federal regulators are poised to block the deal, according to Bloomberg News.Bloomberg reports that Comcast is backing out of the merger deal reached in February 2014. Comcast declined comment.In recent days Wall Street analysts have been increasingly pessimistic over the prospects that the deal would get the greenlight in a tough regulatory environment. After Comcast met with officials of the Justice Department and the FCC on Wednesday came reports that the FCC staff was opposed to the deal and prepared to recommend that it be reviewed before an administrative law judge. Such a scenario would drag out the review process for months if not years.Craig Moffett wrote of the merger on his blog on Thursday: "No, the Comcast deal isn't dead yet. But it's a bit like an elephant that has been dropped out of an airplane. But it is falling fast, there's not much you can do to stop it, and its odds of survival are pretty low when it hits the ground."In fact, analysts have begun to speculate about what is next for Time Warner Cable, whether it be combining with Bright House Networks or Charter Communications.Opponents and critics of the merger, which included Netflix, Dish Network and Discovery Communications, had argued that Comcast would gain too much control over the video marketplace and would be able to exercise some power over the growth of Internet video.The merger, first announced in February 2014, would have combined the largest and second largest cable providers to take just under 30% of the multichannel video market. But opponents increasingly focused their attention on Comcast's share of the broadband market, which the company estimated at between 35% to 40% were the two entities to merge.A key draw for Comcast was the ability to gain a foothold in New York and Los Angeles, where Time Warner Cable has dominance.Yet just in the past few months, it has become clear that the FCC, under chairman Tom Wheeler, was much more skeptical of the health of the competition in the video market. In January, the FCC voted 3-2 to change the standard baseline for broadband service to 25 mbps from 4 mbps. At that level, Comcast would control 57% of the market after the merger.If the merger falls through, Comcast will bear no breakup fees, as those were not written into the agreement with Time Warner Cable.Get more from Variety and Variety411: Follow us on Twitter, Facebook, Newsletter

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Comcast CEO on Ending Time Warner Cable Deal: 'Today, We Move On'After months of fighting the headwinds of fierce opposition, Comcast has bowed to the inevitable and withdrawn its $45.2 billion merger agreement with Time Warner Cable."Today, we move on," Comcast chairman-CEO Brian Roberts said in a statement Friday. "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."Comcast NBCUniversal is a unique company with strong momentum. Throughout this entire process, our employees have kept their eye on the ball and we have had fantastic operating results. I want to thank them and the employees of Time Warner Cable for their tireless efforts. I couldn't be more proud of this company and I am truly excited for what's next."Comcast's decision came after meetings with officials from the FCC and Justice Department. It was clear that the transaction would not have received federal approval without fundamental changes. Those changes are said to have included a proposal from the feds that it spin off NBCUniversal into a separate company — an option that was a non-starter for Comcast execs, sources said.

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Comcast officially abandoned its plans to acquire Time Warner Cable earlier today. But the nation's largest cable provider didn't simply decide it wasn't interested in the $45.2 billion dollar deal any longer. Signals from the Department Justice and the Federal Communications Commission made clear that the merger wouldn't be approved, and Comcast decided to cut its losses.Some claim the move is a victory for the Obama Administration, which has long promised to crack down on antitrust violations and mega-mergers. But in 2011, the FCC and the DOJ approved the merger of Comcast and NBC Universal, another coming together of two massive media companies that raised serious questions about conflicts of interest.Does that mean federal regulators have toughened up since then? Maybe, maybe not. But one thing is for certain: the rest of us have. The world is paying attention to internet policy in a way that it never has before. And with that attention comes pressure that will force the government's hand on everything from network neutrality to antitrust as the internet becomes increasingly central to the lives of everyone.

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