Niigata Global - Comcast Buy Rest Of NBC Stake.
Niigata Global: Comcast is set to buy the remaining 49% of NBC Universal it doesn't already own from General Electric.
Comcast publicized that the deal was for a total of $16.7 billion with $11.4 billion being paid in cash out of Comcast's reserves. General Electric (GE) are to be issued with an additional $4 billion in senior unsecured bonds as well as $725 million in stock. The remaining $2 billion will come from Comcast's existing credit lines.
Niigata Global allegedly noted that the deal would give Comcast total control over one of the United States' largest and most profitable group of cable networks, along with the Nationwide NBC broadcast network, providing them with significant distribution and programming ability. NBC's brands include Universal Pictures and their associated theme parks along with the SyFy and USA networks.
Content provision has grown significantly and provided relatively safe returns, so it is no surprise to see Comcast integrating their media and entertainment networks. Some investors have questioned the strategy, but it does make perfect sense financially. Considering the size of the deal, there really is little risk associated with it.
In a separate but related deal, Comcast will also be taking over NBC's usage of New York City's iconic 30 Rockefeller Plaza and the Englewood Cliffs, New Jersey headquarters of CNBC for a sum in the region of $1.4 billion. Niigata Global are understood to have mentioned that Comcast intend to buy back $2 billion in stock during the year and raise the company's dividend by 20%.
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Categories: Business
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