Comcast, the cable operator co-founded by Ralph J. Roberts, has reached an agreement to acquire NBC Universal from General Electric in a deal pursued by the Philadelphia-based cable company’s CEO, Ralph Roberts’ son Brian.
The
New York Times
reported
that the deal valued NBC Universal at about $30 billion.
The agreement will create a joint venture, with Comcast owning 51 percent and G.E. owning 49 percent. Comcast will contribute to the joint venture its stable of cable channels, which includes Versus, the Golf Channel and E Entertainment, worth about $7.25 billion, and will pay G.E. about $6.5 billion in cash, for a total of $13.75 billion…. Almost immediately, the transaction reshapes the nation’s entertainment industry, giving a cable provider a huge portfolio of new content, even as it raises the sector’s anxieties about the future.
Regulatory agencies must approve the deal, a process that could take up to 18 months, the
New York Times
article said.
Observers say the deal “was driven largely by financial considerations, not synergies,”
the
Financial Times
reported.
Supporters of the deal say it is a hedge against the declining growth of [Brian] Roberts’ cable television, broadband and phone company empire, where it competes heavily with rival phone and satellite groups.
(Sources:
New York Times,
Dec. 3, 2009;
Financial Times,
Dec. 3, 2009.)
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