Comcast Takes Over NBC Universal

Comcast, the nation’s largest cable TV company, took control of NBC Universal late on Jan 28, making it the first cable company to own a major broadcast network.

The takeover gave the cable distributor a 51 percent control of NBC Universal, which owns the nation’s fourth-ranked broadcaster, NBC; the Universal Pictures movie studio and related theme parks; and a bevy of cable channels including Bravo, E and USA. The deal had raised fears that Comcast might abuse its control of NBC Universal to favor the 23 million who rely on it for cable TV service and the 17 million who pay for Internet connections. But the Justice Department and the Federal Communications Commission forced Comcast to make the full suite of NBC Universal content available as a single package to online competitors on terms comparable to those reached with more established rivals, like Dish Network and DirecTV. In the deal, Comcast paid General Electric just under $6.2 billion in cash and contributed its pay TV channels like E Entertainment Television and the Golf Channel, worth $7.25 billion, to NBC Universal. G.E.’s stake in NBC Universal fell to 49 percent from 80 percent, but G.E. plans to diminish that to zero by being paid out from the venture over about seven years. This week, G.E. bought out the 20 percent stake held by Vivendi of France for $5.8 billion in order to complete the deal.