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Comcast and GE  officially announced a deal this morning that will merge the entertainment properties of the cable company with NBC Universal, creating a new media behemoth valued at around $30 $37.25 billion. The venture will be 51 percent owned by Comcast, which is contributing its […]

Comcast and GE  officially announced a deal this morning that will merge the entertainment properties of the cable company with NBC Universal, creating a new media behemoth valued at around $30 $37.25 billion.

The venture will be 51 percent owned by Comcast, which is contributing its portfolio of cable networks, such as E!, the Gold Channel, a number of regional sports networks and other digital media properties, all of which are valued at around $7.25 billion. In addition, Comcast will make a payment of $6.5 billion in cash to GE, an amount that is subject to some adjustments between now and close of deal.

GE will own 49 percent of the venture, and will put up the broadcast network, theme parks, movie studio, and cable-television channels of NBC Universal. In order to make the deal work, NBC will borrow approximately $9.1 billion from third-party lenders and distribute the cash to GE.

GE will purchases Vivendi’s 20 percent stake in NBC Universal for $5.8 billion, a price that the companies agreed to earlier this week. As part of that deal, GE has agreed to purchase a  7.66 percent stake of NBC from Vivendi for $2 billion in September 2010, if the Comcast deal is not completed by then. GE would then acquire the remaining 12.34 percent stake of NBC for $3.8 billion when the Comcast deal closes.

Jeff Zucker, current president and CEO of NBC Universal, will be chief executive of the joint venture, reporting to Comcast COO Steve Burke. The new entity will be headquartered in New York, and will have a board of directors that includes three members from Comcast and two from GE.

The companies spent the last nine months negotiating a deal, but now the real fun begins. The deal is expected to face intense scrutiny from government regulators, which will take several months and could wipe out some of the benefits of creating the venture.

  1. [...] NBC Deal, Comcast’s Pipes Just Got Smarter Comcast and GE said this morning that the two firms would merge Comcast’s entertainment properties with GE’s NBC Universal to create a joint venture valued at $37.25 billion. Comcast will have a 51 percent stake in the [...]

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  2. Can you say “monopoly”? Bust this trust!

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  3. [...] Despite the mix of broadcast, cable and digital assets that would come together as part of a joint venture between Comcast and NBC, it seems that divisions will remain online between content that is [...]

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  4. [...] morning. The new media chimera will be worth approximately $37.25 billion, as reported from NewTeeVee [...]

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  5. [...] A day after I made my predictions at the PRSA-Silicon Valley event, Comcast announced a $37.25 billion deal with General Electric that will marry NBCU and its content machine to the cable operator’s offerings. Paul [...]

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  6. [...] Despite the mix of broadcast, cable and digital assets that would come together as part of a joint venture between Comcast and NBC, it seems that divisions will remain online between content that is [...]

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  7. [...] court decision is also likely to have an impact on the proposed merger between Comcast and NBC, which has come under increased scrutiny by law makers and the FCC [...]

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  8. [...]        0 Is Comcast’s plan to become more of a media player by merging its cable networks with NBC Universal a distraction to its core cable business? Will adding NBC actually return less value to investors? [...]

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  9. [...] No Comments       The FCC’s first deadline to submit comments on the proposed merger of Comcast and NBC Universal’s cable properties ends today, and many companies, labor unions and public interest groups have been filing comments [...]

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  10. [...] FCC’s first deadline to submit comments on the proposed merger of Comcast and NBC Universal’s cable properties ends today, and many companies, labor unions and public interest groups have been filing comments [...]

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