Comcast Completes Deal, Getting Control of NBCUNew venture is 51% owned by Comcast, 49% by GE, and managed by Comcast 1/29/2011 12:17:53 PM Eastern
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
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."