BNO NEWS: Comcast Corporation announced that, along with General Electric (GE), they have closed the transaction this weekend to create a joint venture, acquiring NBC Universal for $30 billion. With the merger, Comcast: which is the largest cable provider in the U.S.: now owns 51 percent of NBC, while GE owns 49.
The announcement explained that 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.
Meanwhile, Comcast: which will manage and maintain NBC's headquarters in New York City: 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.
"This transaction brings together the rich traditions of some of the world"s most well known and respected entertainment, news and sports brands at NBC Universal with the technology and consumer reach of Comcast, creating the ideal entertainment and distribution company," said Comcast Chairman and Chief Executive Officer Brian L. Roberts.
"NBCU has been a great business for GE over the past 20 years, generating an average annual return of 11 percent," GE Chairman and CEO Jeff Immelt said. "Reducing our ownership stake to 49 percent allows GE to continue sharing in NBCU"s growth while also providing significant cash to invest in our high-technology infrastructure businesses."
Last week, the Department of Justice and the Federal Communications Commission approved the merger, conditioning Comcast not to restrict rival cable and Internet providers' access to NBC, among other regulations. Comcast has 16.7 million Internet subscribers plus 23 million cable TV customers.