Comcast to take over NBC Universal
EdwardM
PHILADELPHIA, Thu Dec 03, 09:04 AM
Comcast Corp. announced Thursday it plans to buy a majority stake in
NBC Universal for $13.75 billion, giving the nation's largest cable TV
operator control of the Peacock network, an array of cable channels
and a major movie studio.
Although the deal could mean that movies could reach cable more
quickly after showing in theaters, and that TV shows could appear
faster on cell phones and other devices, it was already raising
concerns that Comcast would wield too much power over entertainment.
Indeed, if the deal clears regulatory and other hurdles, Comcast would
rival the heft of The Walt Disney Co. — which Comcast CEO Brian
Roberts already tried to buy.
Comcast, which already serves a quarter of all U.S. households that
pay for TV, would gain control of the NBC broadcast network, the
Spanish-language Telemundo and about two dozen cable channels,
including USA, Syfy and The Weather Channel. It also would have
regional sports networks, Universal Pictures and theme parks.
Shares of Comcast rose 36 cents, or 2.4 percent, to $15.30 in pre-
market trading Thursday, as the company also announced an increase in
its dividend.
In agreeing to buy 51 percent of NBC Universal from General Electric
Co., which has controlled NBC since 1986, Comcast hopes to succeed in
marrying distribution and content in a way Time Warner Inc. could not.
AOL and Time Warner are undoing their ill-fated marriage Dec. 9. Time
Warner has already shed its cable TV operations.
Comcast's Roberts and GE CEO Jeff Immelt have been discussing the deal
for months, and the final weeks came down to GE's persuading French
conglomerate Vivendi SA to first sell its minority stake.
Comcast made the deal because it is eager to diversify its holdings.
It faces encroaching threats from online video and more aggressive
competition from satellite and phone companies that offer subscription
TV services.
For entertainment viewers, the deal means Universal Pictures movies
could get to cable faster.
TV shows could appear on mobile phones and other devices faster as
part of Comcast's plans to let viewers watch programs wherever they
want. Comcast already is letting subscribers watch cable TV shows
online in trials, with a nationwide launch in December.
On Thursday, Comcast pledged that NBC Universal shows that now cost
money over its cable video-on-demand service would be free for three
years after the deal closes.
Comcast also said it would maintain free, over-the-air TV on NBC
stations — a business model that is eroding because of falling
advertising revenue. Comcast also pledged to improve public interest
programming. And it said it would not let its business interests
affect NBC News.
But consumer advocates worry about the deal, saying people could end
up paying more for TV.
Under Comcast, subscription-TV operators such as DirecTV Group Inc.
and Verizon Communications Inc.'s FiOS service would be negotiating
with a direct rival on how much they have to pay to carry NBC
Universal's cable and broadcast channels.
An NBC Universal under Comcast might be less willing to budge than one
under GE. Consumer groups worry that as a result, fees that are
already creeping up could rise even faster, with the costs passed to
customers in their monthly pay-TV bills.
NBC Universal is profitable, with operating earnings of $1.7 billion
on revenue of $11.2 billion in the first three quarters of 2009,
despite weakness in the fourth-place NBC broadcast network and
Universal Pictures, ranked sixth in North American box office gross
this year by Rentrak Corp./Hollywood.com.
Comcast wants the company largely for its lucrative cable channels. It
is seeking more programming to beef up its video-on-demand offerings
and rely less on cable revenue as the company loses subscribers to
rival providers — such as phone companies that are offering TV
services — or the Internet.
Meanwhile, GE needs cash to support its financing unit, GE Capital,
which was devastated in last year's financial meltdown.
Under the deal, expected to close in a year if regulators and
shareholders approve, GE would buy Vivendi SA's 20 percent stake in
NBC Universal for $5.8 billion. Of that, $2 billion is payable in
September 2010 if the deal hasn't closed by then, and the remaining
$3.8 billion would be due at closing. NBC Universal is to be separated
into a new joint venture.
Comcast would buy a 51 percent stake of the new company by paying $6.5
billion in cash and contributing $7.25 billion worth of cable channels
it owns, including E!, Style and Golf Channel. Moody's analyst Neil
Begley noted that Comcast is jumping in as media company values are
relatively low and stands to benefit as business conditions improve.
GE would retain a 49 percent stake, with the option of unloading half
its stake in 3 1/2 years and all of it in seven years. The new NBC
Universal would borrow $9.1 billion that would partially go toward
covering the money GE owes Vivendi.
Comcast would get to name three people to the board and GE two, and
Comcast would manage the joint venture. Jeff Zucker would remain NBC
Universal's CEO and report to Comcast Chief Operating Officer Steve
Burke. NBC Universal's headquarters are expected to stay in New York.
Consumer groups fear that a Comcast-NBC combination would be so
threatening that rivals would strike similar deals just to compete — a
sentiment echoed by DirecTV Chairman John Malone in a recent interview
with The Associated Press.
And if media ownership were further concentrated, consumers would see
higher prices and fewer choices, said Andrew Jay Schwartzman, chief
executive of the Media Access Project. He warned that online video and
other new forms of competition could be squashed "before they can gain
a toehold in the market."
Satellite TV rival Dish Networks Corp., meanwhile, worries that
Comcast would be in a stronger position to withhold channels from
competitors. CEO Charles Ergen has complained that a regulatory
loophole lets Comcast bar his company from carrying Philadelphia
sports games shown on Comcast's regional sports network. Comcast did
not respond to requests for comment.
The Comcast-NBC deal is widely seen as a test of the Obama
administration's resolve to fight media consolidation, but consumer
groups aren't confident regulators will find a legal means to block
the transaction.
Comcast would likely have to agree to some restrictions, such as
treating rival cable, satellite TV and phone companies equally in
programming talks instead of favoring its own cable operations.
Shareholders haven't been happy, either, at what they see as a renewed
attempt at empire building after Comcast's failed $54 billion hostile
bid for Disney in 2004.
Many investors sold off the stock at the first whiff of a possible
deal with GE, afraid that Comcast would make an acquisition it
couldn't handle and tie up money for dividends and stock buybacks that
could boost Comcast's shares. Shares in Comcast have fallen 11
percent, vaporizing about $5 billion in market value, since word of
the deal leaked Sept. 30.
In an effort to please investors, Comcast said it would increase its
annual dividend by 40 percent, to 37.8 cents per share, and confirmed
it would still buy back stock.
If the deal wins approval, Comcast would still have to make it work.
It's betting that it could do a better job than Time Warner, which
couldn't find a way to make its cable, AOL and content businesses
operate well together.
Comcast said Burke, its chief operating officer, has plenty of
experience in content given his former role as an ABC executive. But
Time Warner, too, had a suite full of entertainment executives.
One problem at Time Warner was the conflicting interests between the
cable and content sides. Time Warner's cable TV unit, before it was
spun off into a separate company, considered bringing Warner Bros.
movies to cable viewers earlier, for instance. But favoring one cable
TV provider over another would have hurt the movie studio. Now Comcast
could face similar challenges.
Comcast also would inherit NBC Universal's weaker units. Its NBC
network has had trouble developing hit shows, reflected in the move to
bring Jay Leno to prime time. Universal Pictures has been socked with
some notable flops including "Land of the Lost." And theme park
attendance is down in the recession.
"These kinds of big mergers always have a `crapshoot' element to
them," said Peter Fader, marketing professor at the University of
Pennsylvania's Wharton School. "You can never predict with certain
success or failure. You can always see it with 20-20 hindsight. This
one will be no different."
———
AP Business Writer Ryan Nakashima in Los Angeles contributed to this
report.
David H.--REMOVE "STOPSPAM" to reply
David H, davi...@STOPSPAMbellatlantic.net, Boston, MA
PLEASE remove "STOPSPAM" from my address when replying via e-mail.
"Patriotism means to stand by the country. It does not mean to stand by
the president or any other public official, save exactly to the degree
in which he himself stands by the country. It is patriotic to support
him insofar as he efficiently serves the country. It is unpatriotic not
to oppose him to the exact extent that by inefficiency or otherwise he
fails in his duty to stand by the country. In either event, it is
unpatriotic not to tell the truth, whether about the president or
anyone else."
-- Theodore Roosevelt
BaSSiStiSt
<davidhhhSTOPS...@bellatlantic.net> wrote:
> Gee, four whole days and no rant about Karma?
NO SUMMONING.
BaSSiStiSt
NO POSTING FROM THE FUTURE, EITHER.
David H.--REMOVE "STOPSPAM" to reply
LOL!
I'm a prophet now!
Actually, I bought a new motherboard and CPU on Black Friday, and finally
got around to installing it. Unfortunately, it was still set on whatever
time it was in whatever Far Eastern country it was built in.
It should be fixed now!
Mark Rosenzweig
> >On Dec 7, 12:28 pm, BaSSiStiSt <bassistist...@hotmail.com> wrote:
> >> On Dec 8, 1:24 am, "David H.--REMOVE \"STOPSPAM\" to reply"
>
> >> <davidhhhSTOPS...@bellatlantic.net> wrote:
> >> > Gee, four whole days and no rant about Karma?
>
> >> NO SUMMONING.
>
> >NO POSTING FROM THE FUTURE, EITHER.
>
> LOL!
>
> I'm a prophet now!
>
> Actually, I bought a new motherboard and CPU on Black Friday, and finally
> got around to installing it. Unfortunately, it was still set on whatever
> time it was in whatever Far Eastern country it was built in.
>
> It should be fixed now!
>
> PLEASE remove "STOPSPAM" from my address when replying via e-mail.
>
> "Patriotism means to stand by the country. It does not mean to stand by
> the president or any other public official, save exactly to the degree
> in which he himself stands by the country. It is patriotic to support
> him insofar as he efficiently serves the country. It is unpatriotic not
> to oppose him to the exact extent that by inefficiency or otherwise he
> fails in his duty to stand by the country. In either event, it is
> unpatriotic not to tell the truth, whether about the president or
> anyone else."
> -- Theodore Roosevelt
FWIW, Rockit never opens before 11AM anyday (usually closer to 1PM).
When it does run, most of the time it has 2 trains and an hour+ wait
even with a dead park. Yesterday it never opened at all- being closed
for "routine" maintenance.
BaSSiStiSt
> FWIW, Rockit never opens before 11AM anyday (usually closer to 1PM).
> When it does run, most of the time it has 2 trains and an hour+ wait
> even with a dead park. Yesterday it never opened at all- being closed
> for "routine" maintenance.- Hide quoted text -
>
> - Show quoted text -
Too bad it's not on the other side of the park, they could re-name it
"D'oh: The Ride"!
Dave Althoff, Jr.
:
: FWIW, Rockit never opens before 11AM anyday (usually closer to 1PM).
: When it does run, most of the time it has 2 trains and an hour+ wait
: even with a dead park. Yesterday it never opened at all- being closed
: for "routine" maintenance.
You could have fooled me the week I was there (week before Thanksgiving).
Granted, I didn't race in at 9am myself most mornings, but it was open
every day that I was there, and I didn't see evidence of late openings.
And I don't know how many trains were running, but typically it was at
least three; not sure if they had four or not.
Is it me, or are the Rockit station queues set up exactly backwards from
what would make sense? (It's Singles | Everybody Else | Front Seat where
the exact opposite arrangement would make a lot more sense...)
--Dave Althoff, Jr.
/X\ _ *** Respect rides. They do not respect you. ***
/XXX\ /X\ /X\_ _ /X\__ _ _ _____
/XXXXX\ /XXX\ /XXXX\_ /X\ /XXXXX\ /X\ /X\ /XXXXX
_/XXXXXXX\__/XXXXX\/XXXXXXXX\_/XXX\_/XXXXXXX\__/XXX\_/XXX\_/\_/XXXXXX
NEW! When emailing this account, include the 'canonical magic word' in
the body of your message for a quicker response.
nogodforme
<dalloff.gcfn....@sbcglobal.net> wrote:
This thread is really moving.
Visited my parents just north of Orlando.
On Friday afternoon I drove home, and didn't stop in Orlando. Didn't
ride Manta, didn't care.
Orlando got no money from me.
I'm into ski trips now. This is my latest web page. No more talk
about Universal or HHN. They can go Fuck themselves.
http://www.nogodforme.com/ParkCityResort2009.htm
Park City Resort Rules. This is the place to go in the winter.
You roller coaster fans need a new sport in the winter. It's called
Skiing. I'm surprised the other boards have not thought of it.
Seriously. You go up a lift, ski down a hill. Freaking, that's
exactly the same thing as a roller coaster ride, except you're in
control.
There's a whole new world out there for roller coaster fan in the
winter. No reason to "wait" around for the new year. Go skiing at
the best resorts in the county.
I'm going to Breckenridge January 17-20.
See you there.
Mark Rosenzweig
>
> - Show quoted text -
Is Park City ghey friendly enough for you?
mamoosh
> Is Park City ghey friendly enough for you?- Hide quoted text -
Park City...as in Utah? U-"restricted alcohol sales"-tah? Wow.
BaSSiStiSt
Actually, Utah did recently get rid of the "you have to be in a
registered "Social Club"" to buy booze in a bar BS.
nogodforme
Yeah, they can't seem to get rid of that label. I had a listing of
liquor stores, but didn't need it. There was an Albertson's grocery
store down the street from the Marriott. I went there to get a few
items, and they had beer and wine. Bought a six pack of Blue Boom
and a few Heinekins. It was the real stuff too, not watered
down.
No, I wasn't drunk on the slopes, that would be nuts. Only in the
hotel room afterwards, which is called Apres Ski or After Skiing.
Oh, and PCMR has an alpine roller coaster. Wasn't open when I was
there, but you can find the POVs on YouTube.
http://www.youtube.com/watch?v=kczIyonurng
It does run in the winter, just that when I was there it was 10
degrees out and snowing. I think they run it when the temps warm up
a little and it's sunny like you see in the video.
So there ya go, visit PCMR and you can go skiing and get a coaster
credit at the same time.
nogodforme
I was looking at the latest pictures of the HP Shopping Mall, and
there's no way it will be ready in 2010.
It's not even close to being done, and there's no rumors of the
simulator going into that building.
How pathetic of them, to hype up the new attraction as being ready in
early 2010, yet it's not even close.
They were a year late with RTR, now they'll be a year late with the HP
shopping mall.
Steelforce
what is RTR? is that another of your drunken anagrams? I don't know
why you even care about the harry potter section, you'll never see it,
oh wait, you're not above trespassing so you probably will...
BaSSiStiSt
> what is RTR? is that another of your drunken anagrams?
RTFR?
Steelforce
I was thinking it meant Rip Trespassing Rockit but who knows...
Funtype
Maybe his fingers were staggering on the keyboard, too much NOG.
--CM
nogodforme
Rip Tide Rocket.
See, the name of the coaster is so fucked up, no one can agree on an
acronym for it.
Haven't been drunk since a week before Christmas. Getting in shape
for my ski trip January 17th. There's still seats available on Delta
if anyone wants to fly to Denver (DEN) and go skiing at
Breckenridge.
Why do I hang here? Because I'm the opposite of the wimps who come in
here and say they're leaving. I'm not in any coaster club, not on
any web sites. So guess what? I'll say what I feel about what I
see going on. In the past people like Jeff "Suck My Dick" Putz
ragged on me when I mentioned bad things the parks were doing. Yet I
was right about many of them. So this is my revenge. I'm not
leaving.
And what I'm saying about Universal is true. They were late on RTFR
or whatever you wanna call it, and they're going to be late with the
HP shopping mall. Yet they'll still hype it up in their
commercials. They should be sued for this as false advertising.