The widely expected and much discussed M&A deal of the year was finally, officially announced: Comcast and GE have signed a joint venture agreement, giving Comcast a 51% majority stake in NBC Universal.
The proposed merger will bring together the largest distribution provider and a major, but struggling, player in the production of broadcast, cable and film content.
Comcast will add to its current portfolio of regional sports networks and cable channels – including the Golf Channel, E! and the Style Network – NBC owned Bravo, CNBC, MSNBC, SyFy and USA, among others.
According to the joint release issued earlier today, “The combination of assets creates a leading media and entertainment company with the proven capability to provide some of the world’s most popular entertainment, news and sports content, movies and film libraries to consumers anytime, anywhere.”
Under the terms of the agreement, GE will contribute its NBCU businesses, valued at $30 billion and Comcast will pay GE approximately $6.5 billion in cash and contribute its stable of distribution platforms and “certain other properties,” collectively worth $7.25 billion.
From a financial perspective, the move is a win-win for the two companies. It will generate an approximated total of $8 billion in much-needed cash for GE and leave Comcast with a cash reserve to grant its shareholders desired dividends.
Comcast’s interest in the joint venture has been named the Comcast Entertainment Group. The Comcast Cable entity will continue to maintain control of the company’s traditional cable business.
To access the full press release, click HERE.
Posts
No comments:
Post a Comment