It's Official: Comcast, NBC/GE Announce Deal

[DToTheJ]

Full press release here:
http://tvbythenumbers.com/2009/12/0...to-create-leading-entertainment-company/35153

COMCAST AND GE TO CREATE LEADING ENTERTAINMENT COMPANY

Comcast To Own 51%, GE 49% Interest in NBCU

PHILADELPHIA, PA and FAIRFIELD, CT – Dec. 3, 2009 – Comcast (NASDAQ: CMCSA, CMCSK) and General Electric (NYSE: GE) announced today that they have signed a definitive agreement to form a joint venture that will be 51 percent owned by Comcast, 49 percent owned by GE and managed by Comcast. The joint venture, which will consist of the NBC Universal (NBCU) businesses and Comcast’s cable networks, regional sports networks and certain digital properties and certain unconsolidated investments, will be well positioned to compete in an increasingly dynamic and competitive media and digital environment.

The combination of assets creates a leading media and entertainment company with the proven capability to provide some of the world’s most popular entertainment, news and sports content, movies and film libraries to consumers anytime, anywhere. The joint venture will provide consumers the broadest possible access to content, and support high-quality, award-winning content development across all platforms including film, television, and online. It will be anchored by an outstanding portfolio of cable networks and regional sports networks that will account for about 80 percent of its cash flow, including USA, Bravo, Syfy, E!, Versus, CNBC and MSNBC. The joint venture will be financially strong with a robust cash-flow-generation capability.

Under the terms of the transaction, GE will contribute to the joint venture NBCU’s businesses valued at $30 billion, including its cable networks, filmed entertainment, televised entertainment, theme parks, and unconsolidated investments, subject to $9.1 billion in debt to third party lenders. Comcast will contribute its cable networks including E!, Versus and the Golf Channel, its ten regional sports networks, and certain digital media properties, collectively valued at $7.25 billion, and make a payment to GE of approximately $6.5 billion of cash subject to certain adjustments based on various events between signing and closing...

Statements from Jeff Zucker and Jeff Immelt (NBC/GE) and Brian Roberts (Comcast) can be found at the above link.

 

[KML0224]

Great! As if I don't pay those idiots enough already! A dish isn't an option here either.

 

[Bill_W]

Will NBC owned WCAU-TV, NBC-10 move from Bala Cynwood, PA into the Comcast tower in Center City Philly?

 

[kms575]

Will NBC owned WCAU-TV, NBC-10 move from Bala Cynwood, PA into the Comcast tower in Center City Philly?

I don't see them moving to the Comcast Center, there's not much street frontage there, and what's there is occupied by the lobby, winter garden and fountains.

Furthermore, I wouldn't be suprised if WCAU and many or all the NBC O&O's get sold off.

 

[KeithE4]

Furthermore, I wouldn't be suprised if WCAU and many or all the NBC O&O's get sold off.

Since Comcast owns cable systems in Chicago and Philly, I think they have to either sell the stations or the cable systems there. My guess is that the stations will go - all of them, and in a moderately short time (less than five years after the deal is closed), the NBC Television Network and Telemundo will be no more, at least as over-the-air networks. I could also see Telemundo and its stations being sold off to another company.

 

[listener-in]

Since Comcast owns cable systems in Chicago and Philly, I think they have to either sell the stations or the cable systems there. My guess is that the stations will go - all of them, and in a moderately short time (less than five years after the deal is closed), the NBC Television Network and Telemundo will be no more, at least as over-the-air networks. I could also see Telemundo and its stations being sold off to another company.

If there is indeed a requirement to divest, which I'm not sure about, it won't be the cable systems. Comcast wants to own both the content and the pipeline, which of course includes broadband. This is bad news for the public and must be blocked - there's already too much concentration in the media.

 

[1069_KIFR]

GE should have sold to Disney, then they could have brought back the NBC Blue and NBC Red networks!!

 

[JayR]

GE should have sold to Disney, then they could have brought back the NBC Blue and NBC Red networks!!

Is this Joseph Gallant?

???

 

[KeithE4]

Since Comcast owns cable systems in Chicago and Philly, I think they have to either sell the stations or the cable systems there. My guess is that the stations will go - all of them, and in a moderately short time (less than five years after the deal is closed), the NBC Television Network and Telemundo will be no more, at least as over-the-air networks. I could also see Telemundo and its stations being sold off to another company.

If there is indeed a requirement to divest, which I'm not sure about, it won't be the cable systems. Comcast wants to own both the content and the pipeline, which of course includes broadband. This is bad news for the public and must be blocked - there's already too much concentration in the media.

This will be looked at long and hard by the Feds as part of their routine anti-trust investigations. Plus, the competing networks and the remaining large cable companies will not let this happen without a fight.

 

[FreddyE1977]

you'd think we all would have learned from the ongoing DirecTV/Comcast/Versus spat that allowing a retail
service delivery company to control a programming network is NOT a good idea.

 

[azumanga]

Since Comcast owns cable systems in Chicago and Philly, I think they have to either sell the stations or the cable systems there.

If there is indeed a requirement to divest, which I'm not sure about, it won't be the cable systems.

This will be looked at long and hard by the Feds as part of their routine anti-trust investigations. Plus, the competing networks and the remaining large cable companies will not let this happen without a fight.

I think just about every market that has an NBC O&O also has a Comcast system:

NBC network O&Os:

Philadelphia
Washington
Hartford

Telemundo O&Os:

Salt Lake City
Denver
Fresno (?)
Boston (also WWDP, a Shop NBC station)

Both O&Os:

New York City (in the Jersey suburbs, at least)
Chicago
Los Angeles (suburbs) (also KWHY, a Spanish indy)
San Francisco
Dallas / Fort Worth
Miami

All things considered, there's going to be a lot of divesting if this deal does pass.

 

[BRNout]

All things considered, there's going to be a lot of divesting if this deal does pass.

Yes, and in a time where credit financing is very hard to come by. Do we know for sure that they would have to divest all of these O&O stations? If so, it could take quite a while to find a buyer or buyers for all of them.

 

[ShawnHill1]

Both O&Os:

New York City (in the Jersey suburbs, at least)
Chicago
Los Angeles (suburbs) (also KWHY, a Spanish indy)
San Francisco
Dallas / Fort Worth
Miami

All things considered, there's going to be a lot of divesting if this deal does pass.

Comcast is gone from L.A. altogether...we were one of those markets involved in the Adelphia-Time Warner-Comcast swaps in 2006. Time Warner got a hold of the Comcast (and Adelphia) systems here, and now control at least maybe 3/4s of the cable households in Southern California (including parts of San Diego).

 

[kms575]

All things considered, there's going to be a lot of divesting if this deal does pass.

Yes, and in a time where credit financing is very hard to come by. Do we know for sure that they would have to divest all of these O&O stations? If so, it could take quite a while to find a buyer or buyers for all of them.

WVIT/Hartford was on the market for quite a while, but was taken off a while back. For now, yhey are an O&O still.

 

[Robnoxious]

If the horror stories about Comcast's reputation with customer service hold any validity (and I believe they do) this merger will be disastrous to the entire delivery of televised content. You like catching up on programs via Hulu? Get set to pay for it. Enjoy your cable bill increases to keep this gargantuan monkey-fist of a conglomerate afloat. Got Dish/Direct/FIOS/cable co other than Comcast? Sit back and enjoy the yearly fireworks as the companies squabble with each other over carriage fees which ultimately will end with yet another beeline to your wallet.

Is it any wonder why piracy is rampant? All I can say is, at least try to smile while you are getting bent over and screwed in every harshest way possible so it doesn't seem as painful. Or, you can get out of the game entirely, say "enough is enough" and unplug. It can be done and if enough people do perhaps quality can return?

 

[MarcB]

You like catching up on programs via Hulu? Get set to pay for it.

Consumer Advocate Clark Howard said Hulu has already started charging for services at least in part.

 

[4dude]

I wonder if the quality of content on NBC will go down!

 

[landtuna]

... Or, you can get out of the game entirely, say "enough is enough" and unplug.

Already done.

 

[Iowan]

What about TV production and distribution? Right now, when the UNIVERSAL MEDIA STUDIOS logo airs, it says "a division of NBC-Universal", but will change in any way?

 

[JeeperOne]

Furthermore, I wouldn't be suprised if WCAU and many or all the NBC O&O's get sold off.

Since Comcast owns cable systems in Chicago and Philly, I think they have to either sell the stations or the cable systems there. My guess is that the stations will go - all of them, and in a moderately short time (less than five years after the deal is closed),

I see them remaining under GE's 49% stake in the new company.

the NBC Television Network and Telemundo will be no more, at least as over-the-air networks.

Bull. NBC will still exist for yet another 60+ years IMO.

I could also see Telemundo and its stations being sold off to another company.

See my comments on the NBC O&O's.

Just my opinion.....

Cheers