Comcast Calls NBCU Purchase Report "Inaccurate"
Another source denies deal is in the works to give cable giant a content footprint
By Claire Atkinson -- Broadcasting & Cable, 9/30/2009 10:04:51 PM
Comcast responded to a Sept. 30 evening report that the cable giant has a deal to buy NBC Universal, calling it "inaccurate."
TheWrap.com reported Comcast made a deal to buy NBCU from General Electric for $35 billion. The report cites two sources who claim a deal was hammered out at a meeting in New York on Sept. 29. The price was pegged at $35 billion, a valuation that J.P. Morgan had suggested in a report a couple of weeks ago.
A spokesman for Comcast, in an email message to Broadcasting & Cable, responded, "While we do not normally comment on M&A rumors, the report that Comcast has a deal to purchase NBC Universal is inaccurate." Another party, which did not wish to go on record shot down news of a deal.
General Electric reps have yet to respond to requests for comment, but industry Blackberrys are already buzzing. Two Wall Street media analysts contacted Sept. 30 were caught be surprise saying they had no information on any likely deal.
Earlier this month Comcast's COO Steve Burke suggested the company was more interested in content deals than adding to distribution. "We would like to get bigger if the economics were right," Burke said. "I think we would not be doing our job if we weren't trying to figure out how to get bigger in those businesses. If the opportunity came about where we could add cable content to our portfolio, I think we would do it."
J.P. Morgan analyst Stephen Tusa said 2009 will be viewed as a bottom for NBCU, but noted better days are ahead as the ad market improves. In a September note he wrote, "Longer term we continue to believe that there are strategic alternatives for NBCU, an asset that has little synergy with the rest of GE and that we believe, under reasonable assumptions, is commanding no value in the GE stock price."
Media stocks were generally down Wednesday along with the S&P which fell 0.33%. General Electric stock traded downward today ending Sept. 30 at $16.42 off 1.74%. Comcast also traded down at $16.88, falling 2.88% putting its market cap at $48.44 billion.
What remains in question is whether a deal has also been done for the remaining 20% of NBC Universal that is owned by France's Vivendi, which has an annual option to sell its stake. A decision on that possible sale was expected at a board meeting in mid-October.
If Comcast has indeed made a deal to buy NBC Universal it would put the Philadephia-based MSO on the map in a major way. It would significantly bolster its cable channel offerings which currently include E! Entertainment, Style network, G4 and Versus. It is unclear what Comcast might want to do with a broadcast network or a theme park, though the company once made a $54 billion bid for Disney.
NBC Universal's cable assets include the top-rated USA Network, as well as Bravo, SyFy and Oxygen and news channels CNBC and MSNBC. NBC Universal also holds a stake in The Weather Channel and a third share of online Web video portal Hulu.
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Hopefully, the first thing Comcast will do is fire Keith Olbermann. What an ass.
Joe Edwards - 10/1/2009 2:12:39 PM EDT
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