GE Buying $325 Million Worth Of Ads From NBC Over Next 5 Years
Comcast may be the new majority shareholder in NBC, but General Electric has promised to buy about $345 million worth of ads from the TV network over the next 5 years. About $59 million will be spent each year, adding up to the $345 million. GE will also buy $50 million worth of 2012 Olympic Games ads. NBC owns the rights to the 2012 Olympic Games broadcast. The financial details of this transaction was revealed on an SEC filing.
Last year, GE spent $1.2 billion for advertising and most of that went towards marketing NBC Universal movies. The filing also revealed that Comcast cannot sell its stake for at least four years and GE cannot sell its stake for at least 3.5 years. After that period of time, Comcast will have the right to buy out NBC completely.
Comcast agreed to pay $6.5 billion in cash along with $7.25 billion in assets to gain control of NBC. The whole deal was valued at about $30 billion.This article was written by Amit Chowdhry. You can follow me at @amitchowdhry or on Google+ at +AmitChowdhry