General Electric and Comcast have reached a deal for Comcast to own the majority of NBC Universal, which owns NBC Connecticut.
Under the agreement, Fairfield-based GE will sell 51 percent of its stake in NBC Universal to the cable giant, Comcast. GE would retain 49 percent of the company.
The move comes after GE bought Vivendi SA’s 20 percent stake in the company.
The deal is pending regulatory approval and the new company would bring more cable programming to NBC Universal, said Jeff Zucker, President and CEO of NBC Universal. He will continue to lead NBC Universal and the company’s headquarters will remain in New York.
Over NBC’s 83-year history, the company has transformed from the nation's first radio network into a major provider of news, entertainment and sports, both on air and online.
Through the Comcast partnership, NBC’s offerings would continue to expand, creating a “diversified television, film and digital media company,” GE CEO Jeff Immelt said.
The venture would include all 234 NBC-affiliated stations and 10 owned and operated television stations, in addition to the theme parks, Telemundo Network and movie production studios.
“This deal is a perfect fit for Comcast and will allow us to become a leader in the development and distribution of multiplatform ‘anytime, anywhere’ media that American consumers are demanding,” Comcast Chairman and CEO Brian Roberts said in a news release. “In particular, NBCU’s fast-growing, highly profitable cable networks are a great complement to our industry-leading distribution business.”
The deal generated $8 billion of cash at closing with an expected small after-tax gain for GE, Immelt said in a news release. “We have many opportunities to invest in our high-technology infrastructure businesses at attractive returns. I believe that the new NBCU will deliver value for both Comcast and GE in the future. We will give consumers and advertisers more choice and our cable and digital assets will be second to none.”
NBC was formed in 1926 by General Electric Co., Westinghouse Electric Co., and Radio Corporation of America. At that time, when radio was the media king, RCA figured people would buy the radios it made if they had interesting things to listen to.
NBC entered the broadcasting realm in 1939 and produced TV's first star in Milton Berle in 1948.
NBC is already a big player in cable, with channels including USA, Syfy, Bravo and CNBC. NBC’s cable role is certain to expand with Comcast’s own offerings.
