Comcast Still Has Persuading To Get NBC
Before Comcast Corp. can transform the entertainment business by taking control of NBC Universal, it must convince Washington that the plan won't hurt rivals and consumers.
And the promises the cable company has made so far don't impress opponents who want federal regulators to attach strict conditions to the deal. To show that it would not abuse its control over NBC's broadcast networks, cable TV channels and movie studios, the nation's largest cable provider is making nine pledges, including a vow not to move the NBC broadcast network to cable and a commitment to expand public interest programming.
But consumer groups and competitors say Comcast is offering token concessions that don't address their biggest fears about the NBC combination. "Comcast is either promising to do what it was already planning to do or simply what it is required to do by law," says Corie Wright, policy counsel at the public interest group Free Press. "I don't think Comcast can just tie a bow around the status quo and call it a public interest commitment."
Comcast is quick to defend its position. "We think we have made significant and meaningful commitments that are designed to ensure the deal is pro-consumer," says Comcast Executive Vice President David Cohen. Now it is up to Washington to decide.
The Justice Department and the Federal Communications Commission are examining Comcast's plans to buy a 51 percent stake in NBC Universal from General Electric Co. for $13.75 billion. Those reviews could last up to a year. Congressional hearings are also scheduled for February.