NBC Buyout?
posted Sunday Dec 6, 2009 by Nicholas DiMeo
Custody of NBC Universal may shift very soon, and that makes us very uneasy. At this time, 80 percent of the company is owned by GE, which is worth about $30 billion. When this deal goes through Comcast will own 51 percent of NBCU, and GE will only own 49 percent. A cable company owning a TV station? Not a good idea.
According to a close source, the deal is complete as soon as they cross the "t's" and dot the "i's." This is expected to be complete by Thursday morning, but may not be finalized for more than a year. It may take this long as they wait to be approved by the FCC, but this does not seem to be a big concern.
Vivendi is expected to sign over the 20 percent it holds in the company, which is valued at $5.8 billion, before the deal goes through.
Not only will Comcast own NBCU, it also comes with a cherry on top, $9 billion in debt. But to Comcast, it is worth it, making them one of the nation's largest entertainment companies, the other being The Walt Disney Co.
Comcast hopes that this will give them the upper hand in the industry, with competition growing rapidly in satellite television and phone companies that offer subscription TV services.
The major concern is that Comcast may be too powerful once the deal is finalized. But, on the plus side, it is anticipated that TV shows could appear faster on cell phones and movies may come to cable TV quicker.
In the next seven years, GE may give up total possession of the company. That is a pretty scary thought.
