Comcast to acquire majority stake in NBC Universal

Comcast announced on Thursday that it plans to buy a majority stake in NBC Universal from General Electric, a move that would add to the US cable giant’s empire.

Comcast will control 51 percent of NBC Universal, along with GE (which owned 80 percent) retaining the other 49 percent. France’s Vivendi is selling its 20-percent stake in NBC Universal to GE for 5.8 billion dollars.

The proposed joint venture would combine Comcast’s cable television and high-speed broadband operations with NBC Universal’s news, movie and television programming, creating an unparalleled merger of distribution and content.

“Today?s announced transaction will increase our capabilities in content and cable networks,” Comcast chief executive Brian Roberts said.

“This deal is a perfect fit for Comcast and will allow us to become a leader in the development and distribution of multiplatform ‘anytime, anywhere’ media that American consumers are demanding,” he said in a statement.

The deal vaults Comcast into the ranks of the media and entertainment elite alongside Disney, News Corp. and Time Warner and is certain to draw regulatory scrutiny which some company officials said could take up to two years.

Democratic Representative Henry Waxman of California, chairman of the House Committee on Energy and Commerce, said it “has the potential to reshape the media marketplace.”

“This proposal raises questions regarding diversity, competition, and the future of the production and distribution of video content across broadcasting, cable, online, and mobile platforms,” Waxman said in a statement.

“It is imperative that the (Federal Communications Commission), the Justice Department, and the (Federal Trade Commission) rigorously assess whether this transaction is in the public interest.”

The FCC said it will “carefully examine the proposed merger and will be thorough, fair, and fact-based in its review.”

Comcast said in a statement that it will pay GE around 6.5 billion dollars in cash. In addition, Comcast will “contribute its programming businesses and certain other properties valued at 7.25 billion dollars.”

The joint venture would have debts of nine billion dollars. It values NBC Universal at 30 billion dollars.