On October 1, 2009
Risks in Buying NBC Universal Include Broken Peacock Network
The escalating risks associated with buying NBC Universal or any traditional media conglomerate — which includes declining TV stations and broadcast networks — is why Comcast will likely settle for a 51 percent stake in the company, for now. Corporate parent General Electric is in talks to spin off NBCU into a private company to which Comcast would contribute an estimated $6 billion in content assets and about $7 billion in cash. Although GE’s 80 percent ownership would be reduced to 49 percent, it would accrue NBCU cash flow on its balance sheet and could transfer an estimated $12 billion in debt to the stand-alone entity, sources said. A report on NBCU-owned CNBC confirmed some of the details being…
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