Comcast announced yesterday that they reached a deal with G.E. to buy NBC Universal. Under the terms of the agreement, Comcast will own 51% and G.E. will keep 49% of the company. The deal valued NBC Universal at $30 billion.
The New York Times reports Comcast will pay $6.5 billion in cash and contribute its cable channel properties to the venture, which are worth about $7.25 billion, for a total of almost $14 billion. The network will keep its NBC Universal name, but Comcast could change it later on. Jeff Zucker will stay on as chief executive, reporting to Steve Burke, COO of Comcast. NBC headquarters will remain in NYC.
Apparently, NBC’s cable properties are the network’s most valuable assets in the deal – USA, Bravo, SyFy, CNBC and MSNBC are considered the most lucrative channels. These networks and the cable channels that Comcast brings in to the joint venture will constitute 82% of the company’s cash flow.
It could take up to 18 months for the deal to be approved by the FCC.