General Electric Selling Control of NBC To Comcast, Deal Valued At $30 Billion
Comcast Corporation and General Electric has entered an agreement that would give Comcast the controlling interest in NBC Universal Inc. Comcast is paying $6.5 billion in cash and the cable company agreed NBC to maintain its editorial independence for NBC News. Comcast is also currently negotiating buying NBC Universal as a whole. To appease shareholders further, Comcast agreed to pay the annual cash dividend to 40% which is almost $0.38 per share next year.
Comcast said that the merger makes them “strategically complete.” Comcast said that the reason why for buying NBC was because the network owned highly profitable TV channels such as USA, CNBC, MSNBC, Bravo, and Syfy. Comcast will own 51% of NBC. The deal values NBC at about $30 billion.
“This deal is a perfect fit for us,” stated Comcast CEO Brian Roberts. “We are honored that under this agreement Comcast would take over stewardship of this important collection of assets and are absolutely committed to investing in NBCU and ensuring that it is a vibrant, financially strong company able to thrive in a rapidly evolving marketplace by delivering innovative programming.”This article was written by Amit Chowdhry. You can follow me at @amitchowdhry or on Google+ at +AmitChowdhry