Comcast Corporation and General Electric have closed their transaction to create a joint venture, NBCUniversal, LLC. Under the terms of the transaction, GE contributed to the joint venture NBC Universal, Inc.’s businesses, including its cable networks, filmed entertainment, televised entertainment, theme parks, and unconsolidated investments. Comcast contributed its cable networks, including E!, Versus and the Golf Channel, its regional sports networks, certain digital media properties, and made a payment to GE.
The new company is 51 per cent owned by Comcast, 49 per cent owned by GE, and managed by Comcast. It maintains its headquarters in New York City. Comcast’s stake is valued at $13.45 billion, comprising $6.2 billion in cash, with the cable channels rated at $7.25 billion.
Comcast Chairman and Chief Executive Officer Brian L Roberts said the transaction brought together “the rich traditions of some of the world’s most well known and respected entertainment, news and sports brands at NBCUniversal with the technology and consumer reach of Comcast, creating the ideal entertainment and distribution company.
GE Chairman and CEO Jeff Immelt said that NBCU had been a great business for GE over the past 20 years, generating an average annual return of 11 per cent. “Reducing our ownership stake to 49 per cent allows GE to continue sharing in NBCU’s growth while also providing significant cash to invest in our high-technology infrastructure businesses.,” he explained.