The state of New York announced that it would not approve the merger of Time Warner with Comcast if both do not agree to some terms.

The biggest providers of cable service in the United States are now lobbying with legislators from New York State to let them go through with their $42.5 billion merger.

Although the U.S. government has begun evaluating the agreement to secure that it will not violate any antitrust laws, the state of New York will still be the final body to decide on the fate of the deal. This is because of a newly-enacted law stating that cable companies operating within the state should primarily benefit the public. If the state disapproves the merger, both Time and Comcast are expected to terminate their deal.

"They definitely have leverage," Brad Ramsay, general counsel at the National Association of Regulatory Utility Commissioners, a Washington-based group that represents state regulators told Bloomberg.

"They can definitely extract concessions," he added.

With the upcoming elections, the merger became the subject of most gubernatorial campaigns. Current governor Andrew Cuomo remained silent on the issue. Cuomo has received at least $200,000 as campaign donations from both companies.

The merger decision will be announced on Oct. 2 after the New York State Public Service Commission casts its votes. The agency announced that they are thinking of accepting the deal only if Time Warner and Comcast accept their terms, which require Comcast to retain the jobs in New York, provide faster Internet connection for a lower price, expand the service to some areas where connection is unstable, simplify enrollment plans, and develop a program that will provide Internet connection to poor families.

If the merger pushes through, Comcast will acquire an additional 7 million subscribers.

"We look forward to working with the mayors of New York and Los Angeles as the regulatory review process proceeds, and with the state commissions who have the jurisdiction for review in both California and New York," said Comcast spokeswoman Joelle Terry to Bloomberg.