Later in 2010 cable giant Comcast will, once the usual regulatory hoops have been overcome, own 51% of a new joint-venture with General Electric that will itself own media conglomerate NBC-U. The deal is valued at $13.75bn, with $6.5bn being paid in cash. However, the overall value of NBC-U is now put at some $37bn.
Comcast will also be investing its cluster of broadcast and digital assets into the deal worth in themselves $7.25bn, including E! Entertainment. The NBC-U name will continue as the operation's umbrella brand. Other channels in the mix include Bravo, CNBC, and SyFi amongst others.
Jeff Zucker, NBC-U's current boss will continue in his role reporting to Comcast's CEO Steve Burke.
GE will have 49% of the new enterprise, although Comcast also gets options to buy GE's interests at key stages over the next few years, and already analysts are suggesting that GE's overall intention is to exit the business. GE had owned 80% of NBC-U (with Vivendi owning the balance).
However, the regulatory hoops may be challenging. Regulators in Washington will have plenty to investigate, as will the various staff and craft unions to object to. One contentious point might well be the power Comcast will have over a now very large portfolio of channels, and the potential prospects of refusing to supply those channels to a non-cable entity such as DirecTV or Echostar. The regulator might well rule a variation on the ‘must carry' rules (‘must offer') for NBC-U.
