AP sources: Comcast to pay $13.75B for NBC stake

[Newsjock]

Source: Associated Press

Comcast Corp. is expected to pay $13.75 billion in cash and assets to gain control of NBC Universal from General Electric Co., The Associated Press has learned.

The deal, which was set to be announced Thursday morning, calls for the nation's biggest cable TV provider to spend $6.5 billion in cash and contribute cable channels worth $7.25 billion for a 51 percent stake in NBC Universal, according to people familiar with the talks who spoke on condition of anonymity because the agreement has not been made public.

The new NBC Universal also is expected to borrow $9.1 billion — part of which will be used to cover the $5.8 billion that GE is paying for Vivendi SA's 20 percent stake in NBC Universal. That company includes the flagship NBC TV network, the Telemundo Spanish-language network, Universal Pictures and theme parks, and about two dozen cable channels such as Bravo and CNBC.

Read more: http://www.sfgate.com/cgi-bin/article.cgi?f=/n/a/2009/12/02/financial/f142948S71.DTL&tsp=1

[Pab Sungenis]

1. We can't just stand there and allow this to happen.

The FCC has to intervene.

[depakid]

2. Huge test for the Obama administration

Media consolidation is a pernicious trend which, among other things, has turned the nation's media into a culture if lies and unaccountability.

[Prospero1]

3. this goes beyond consolidation....

what we are seeing is an attempt at a vertical monopoly. There is an inherent conflict of interest for a deliverer of content to have an interest in a particular provider of content. I have personal experience with Comcast abusing its position just as a deliverer: reducing service while increasing prices, diminishing analog service in order to force customers to buy equivalent digital services that cost more, providing compressed HDTV signals, putting limits on "unlimited" internet service. They are not to be "trusted".

[depakid]

7. They also blatantly violated the Clayton Anti-trust Act

When they rook over ATT's broadband internet service, they jacked up charges by an exorbitant amount- unless you purchased their crap basic cable offering (which a lot of people didn't want). Under this package, your internet fees remained the same.

Textbook case of a tying contract, though of course, the Bush Administration did nothing.

I think corporations look at how impotent the Obama administration's Justice Department is and they figure they can get away things with this.

Hell, Peanut Corp executives got away with murder!

[AllHereTruth]

4. Digg this story. Get DU voice heard

http://digg.com/business_finance/AP_sources_Comcast_to_pay_13_75B_for_NBC_stake

[dreamnightwind]

5. This must be stopped!

This is huge, and is the exact opposite direction that things need to move in.

Not that this is all about MS-NBC, it's obviously WAY bigger than that, but just using it for an example, we can all remember the days not so long ago before Keith, Rachel, and Ed had shows, where there was not 1 single regularly scheduled progressive voice on network or cable news. If this deal goes through, we could be right back to that place.

The House is showing some resolve at the moment when it comes to legislation expanding the government's authority to break up too-big-to-exist financials. Perhaps we can push hard and help manifest the political will to do the same for media consolidation. It'll be a heavy lift, but the stakes are worth the effort.

Who do I write, call?

[LaPera]

10. Your correct. Comcast is a huge republican contributer & would like nothing better than to get rid

of the only progressive voices on major cable network (MSNBC) Keith, Rachel & ED.

We will be left with only Free Speech Television (FSTV) which is absolutely excellent - Amy Goodman, (Democracy Now) Laura Flanders (GriTV) & Thom Hartmann show. (Which comes with Dish Network subscription).

However, this certainly is enough....This deal must be stopped.

[onenote]

13. comcast's pac gave more to democrats than repubs in 2008

They are neither a "huge" repub contributor nor a "huge" Democratic contributor -- like most corporate pacs, they favor incumbents of whatever stripe.

And in the Presidential election, Comcast employees gave far far more to Obama than to McCain. But that also holds true for many companies.

[onehandle]

6. Anti-Merger site ----->

http://freepress.net/comcast

[Judi Lynn]

8. Thank you, onehandle. Hope our voices will be heard. n/t

[dreamnightwind]

11. Yes, thanks

Sent a note from their site. Later I'll try to email or call my congress critters.

This will take a lot of noise to get any action, Comcast is a big hairy beast that pols will be reluctant to oppose.

[alp227]

9. Will Comcast buying NBC affect the PROGRAMMING as well?

Comcast owns the E! and G4 cable channels, not known exactly for quality shows like Law & Order, 30 Rock, or The Office on NBC (G4 shows Heroes reruns though). Imagine what'd happen under a Comcast-owned NBC. The primetime schedule would be polluted with clones of Kardashian/spoiled Hollywood chick reality shows or whatever mindless crap is usually shown on G4. Oh, at least Comcast also owns the Golf and Versus networks, more sane than E! and G4.

And some Fox Sports Net channels were bought by Comcast. What do you think of that?

[lostnfound]

15. MSNBC's prison shows would fit right in. nt

[TheWebHead]

12. because broadcast television is going the way of the buggywhip

... or newspapers... it seems to be about the only logical path for the networks to take. CBS back in March was in deep trouble lest we forget, and the idea of these networks running deep debt puts their viability into question, not just concerns about channel position bias. It also doesn't hurt that GE can raise some capital to ease concerns with GE Capital, one of our too big to fail institutions.

[Blandocyte]

14. that pricey stake better come with baked potato

[derby378]

16. Maybe we should have protests in front of our NBC affiliates?

Carrying signs saying KEEP THIS CHANNEL COMCAST-FREE or something like that.