Comcast Completes Deal, Getting Control of NBCU

New venture is 51% owned by Comcast, 49% by GE, and managed by Comcast

By Jon Lafayette -- Broadcasting & Cable, 1/29/2011 12:17:53 PM

Comcast and General Electric said Saturday they have completed their $30 billion transaction that creates a joint venture comprised of NBC Universal and Comcast's cable networks assets.

The new venture, called NBCUniversal, is 51% owned by Comcast, 49% by GE, and managed by Comcast. It maintains its headquarters in New York City.

 "This transaction brings 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," said Comcast CEO Brian Roberts.

Steve Burke, who had been COO of Comcast, will run NBCUniversal. Burke introduced himself to NBC Universal staffers at a town hall meeting on Thursday. NBCU staffers also got a welcome package that included 25 shares of Comcast stock.

The acquisition was announced in 2009 and went through a lengthy review by the government, getting approval only last week.

"NBCU has been a great business for GE over the past 20 years, generating an average annual return of 11 percent.  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," said GE CEO Jeff Immelt. "I want to express GE's and my special thanks to the talented and dedicated employees of NBCU who have built a world-renowned business and are its heart and soul."