Comcast Is Paying $16.7 Billion For Remaining Stake In NBCUniversal

Posted Feb 13, 2013

Comcast announced this week that they will be buying the remaining stake in NBCUniversal for $16.7 billion.  Comcast also released their Q4 earnings and they have announced a 20% increase in its dividend along with a $2 billion stock repurchase plan.

?Our decision to acquire GE?s ownership is driven by our sense of optimism for the future prospects of NBCUniversal and our desire to capture future value that we hope to create for our shareholders,? said Comcast CEO Brian Roberts.

Comcast is financing the buyout with $11.4 billion of cash on hand, $4 billion of subsidiary senior unsecured notes, $2 billion of borrowings, and $725 million of subsidiary preferred stock that they will issue to GE.  Comcast has also agreed to pay $1.4 billion for the NBCUniversal headquarters in New York at 30 Rockefeller Plaza along with CNBC’s facilities in New Jersey.

Comcast reported a net income of $1.8 billion in Q4 earnings, which is a 14% gain versus the period in the year before.  The company hit revenues of $15.9 billion, which is a 6% gain.

NBC reported that revenues were up 4.8% to $6 billion and operating cash flow was up 11.4% to $1.2 billion.  Before this new agreement, GE could have required Comcast to buy half of its 49% NBCUniversal stake at the end of July 2014 and the remaining half in January 2018.