<p><span style="font-size:19.5pt;"><font face="Verdana">Comcast strikes deal to buy NBC Universal from GE</font></span>

<span style="font-size:10.5pt;"><b><font face="Verdana">The $30-billion transaction would put a major production studio and broadcast network under the control of the nation's largest cable TV company.</font></b></span>

<span style="font-size:7.5pt;"><b><font face="Tahoma">By Meg James and Joe Flint</font></b></span>

<span style="font-size:9pt;"><font face="Verdana">In a momentous shift in the balance of power of the entertainment industry, cable television giant Comcast Corp. announced this morning that it was acquiring control of NBC Universal from General Electric Co.

The proposed $30-billion transaction is the fruition of a longtime ambition by Comcast's 50-year-old chief executive, Brian Roberts, to recast his family-controlled Philadelphia company into a leading producer of movies and television shows and a purveyor of prominent cable and broadcast networks, including the venerable NBC.

Under terms of the deal, Comcast will contribute its entertainment channels, including E and Versus; nine regional sports networks; and about $6.5 billion in cash in exchange for 51% of the new venture, which will continue to be called NBC Universal for the immediate future.

The deal underscores how cable television -- not a broadcast network or a Hollywood movie studio -- has become the new profit center for media conglomerates.

GE, which has owned the NBC network for 23 years, will reduce its ownership in the company to 49%. The deal sets up GE for a gradual exit from the entertainment business, granting Comcast the right to buy out GE's interest within eight years. GE placed a value of $30 billion on its NBC Universal businesses.

Comcast said the entertainment assets that it was contributing to the joint venture were worth $7.25 billion.

Giving up control of NBC Universal represents a significant retrenchment by GE, which has long prided itself on strong management. But the industrial giant no longer appeared to have the wherewithal to navigate the rapidly changing media landscape or the will to make the financial investment needed to revive the slumping peacock network and troubled movie studio.

If the deal wins regulatory approval, the new Comcast-controlled NBC Universal will be one of the largest entertainment companies in the world, with assets spanning the NBC broadcast network; more than a dozen cable channels, including USA Network, Syfy, Bravo, E and Style; nine regional sports channels; the Universal Pictures film studio; Universal Studios theme parks; Spanish-language network Telemundo; more than two dozen TV stations; and a stake in the popular online video website Hulu.

"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," Roberts said in a statement. "In particular, NBCU's fast-growing, highly profitable cable networks are a great complement to our industry-leading distribution business."

The deal will be one of the first big mergers to face regulatory scrutiny from the Obama administration and is expected to undergo a lengthy review, lasting perhaps a year or longer, before the two companies are allowed to combine. Already advocacy groups and rival media companies are lining up to protest the grip on programming that the new company would have on television and the Internet.

Comcast's move to acquire control of NBC Universal runs counter to the current trend of media giants shrinking. Many investors have concluded that the hoped-for "synergies" between content producers and distributors rarely deliver on their promise.

Earlier this year, for example, Time Warner Inc. unloaded its cable TV division and next week it plans to spin off its AOL unit. Four years ago Viacom Inc. split from CBS Corp after determining that it was nearly impossible to get the two companies' far-flung business units to mesh.

Comcast's deal with GE, negotiated over the last eight months, became possible when French conglomerate Vivendi agreed this week to sell its 20% stake in NBC Universal for $5.8 billion.

Steve Burke, Comcast's chief operating officer, will oversee the new venture, an entertainment colossus that would rival Walt Disney Co., News Corp. and Viacom in size and power. NBC Universal's current chief executive, Jeff Zucker, will stay on to manage the company's day-to-day operations.

As for the legendary Universal Pictures, Comcast would become the Hollywood studio's sixth owner in less than 20 years. Another change in ownership comes at an awkward time for Universal, which has suffered from a string of losses at the box office and turmoil within its management team. The studio's two top film executives were forced out in early October after costly misfires including "The Land Before Time" and "Funny People."

Comcast's two primary challenges will be integrating two huge companies with dramatically different cultures and fixing the NBC broadcast network, which has suffered from years of mismanagement and cost-cutting.

In what appears to be a major miscalculation, Zucker moved comedian Jay Leno's program into prime time, which has produced paltry ratings for the show and chased viewers away from the late local news programs of affiliated NBC TV stations. The shift also severely damaged NBC's late-night comedy shows, which until this season were some of the brightest stars in the NBC firmament.

A Comcast-controlled NBC Universal will have an advantage over its content-owning rivals: a cable TV pipeline reaching nearly a quarter of American homes with TVs. That not only will give it an edge when it launches new cable networks but also will provide a huge base of customers to which it can sell pay-per-view programming, including movies from the Universal movie studio and sports programming from NBC.

Comcast also will have an important role in determining how entertainment is distributed over the Internet and whether consumers will have to pay more to watch TV shows and movies on their computers and other devices.

More startling to some, Comcast will now own one out of every seven TV channels, provoking concerns about media concentration.

"No entity should have control over such a large audience," Andrew Schwartzman, president of Media Access Project, a media watchdog and public interest law firm, said in a statement. "It's the most important merger since Lucy met Desi."

In addition to the Federal Communications Commission, the deal also must be reviewed by the Department of Justice or the Federal Trade Commission. Congress also will weigh in, with the Senate Judiciary Committee's antitrust subcommittee expected to hold hearings on the proposed merger, perhaps as soon as this month.

In a letter to regulators and policymakers this morning, Comcast made several commitments aimed at easing concerns about the size of the new entity. Among the most crucial, Comcast said NBC would remain an over-the-air broadcast network. The company also would obey existing rules and not withhold its content from rival distributors, such as satellite broadcaster DirecTV or Verizon's Fios television service.

Some corners of the media industry are expected to lobby for concessions, although many experts expect the merger to ultimately win federal approval because there are no rules against combining content producers with distributors.

Finally, the formation of the new company would mark the end of an era for GE's management of a major media company.

GE, which acquired NBC in 1986, turned it into a profit- and hit-making machine, inventing the slogan "must-see TV" and fielding such memorable programs as "Cheers," "Seinfeld," "Friends," "Frasier" and "Law & Order."

NBC also was an early proponent of the future of cable television, building news channels CNBC and MSNBC. Through GE's deep pockets, NBC was able to secure its high-profile and expensive contracts to broadcast the Olympics and National Football League games and to acquire Vivendi's Universal assets five years ago.

"NBC Universal has been a great business for GE over the past two decades," GE Chief Executive Jeffrey Immelt said in the statement. "I am confident Brian Roberts and his team at Comcast will be great partners."

Not everyone was sure that this was the ending that GE had hoped for.

"Unfortunately for GE, it looks like they'll have bought high and sold low on their NBCU assets," Sanford Bernstein & Co. media analyst Craig Moffett wrote in a report several weeks ago analyzing the deal.

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Times staff writer Claudia Eller contributed to this report.</font></span>

<span style="font-size:7.5pt;"><b><font face="Tahoma">http://www.latimes.com/business/la-fi-ct-comcast4-2009dec04,0,7144558.story</font></b></span></p>

Edited December 3, 200916 yr by Sylph

Can't wait to see the changes Comcast will make

The important thing is, Jeff Zucker still has a job!

NBC has gone down so low that I expect the media will start the comeback kid story soon enough. They have already hyped NBC buying a JJ Abrams project (I hope it does better than Fringe has).

The important thing is, Jeff Zucker still has a job!

NBC has gone down so low that I expect the media will start the comeback kid story soon enough. They have already hyped NBC buying a JJ Abrams project (I hope it does better than Fringe has).

That's the most puzzling thing about the whole deal.

Why would they want him to stay?!

That's the most puzzling thing about the whole deal.

Why would they want him to stay?!

Failing upwards wins out once again.

He must know people. Or know stuff about them.

5 Things Comcast Must Do to Save NBC: http://www.thewrap.com/ind-column/five-things-comcast-must-do-save-nbc-9878

The important thing is, Jeff Zucker still has a job!

I think eventually Zucker will be out, or moved to another division, away from NBC Entertainment.

I agree with a lot of that list, although I think "be HBO" is short-sighted. Even HBO isn't really HBO anymore. Their days of having multiple critically lauded shows which also have a healthy viewing audience are generally gone, aside from "True Blood." NBC should just be NBC. NBC took a big risk on keeping "St. Elsewhere" and "Hill Street Blues" when the shows were in the ratings toilet and seen as oddities, and in the long run, the risk paid off, and the shows revolutionized TV forever.

I agree with a lot of that list, although I think "be HBO" is short-sighted. Even HBO isn't really HBO anymore. Their days of having multiple critically lauded shows which also have a healthy viewing audience are generally gone, aside from "True Blood." NBC should just be NBC. NBC took a big risk on keeping "St. Elsewhere" and "Hill Street Blues" when the shows were in the ratings toilet and seen as oddities, and in the long run, the risk paid off, and the shows revolutionized TV forever.

*cough*

FRIDAY NIGHT LIGHTS

*cough*

I have a very light cough.

I agree with a lot of that list, although I think "be HBO" is short-sighted. Even HBO isn't really HBO anymore. Their days of having multiple critically lauded shows which also have a healthy viewing audience are generally gone, aside from "True Blood." NBC should just be NBC. NBC took a big risk on keeping "St. Elsewhere" and "Hill Street Blues" when the shows were in the ratings toilet and seen as oddities, and in the long run, the risk paid off, and the shows revolutionized TV forever.

But the difference between Hill Street Blues vs. The Office is that the former is a good show. The latter SUCKS.

HBO is SO not HBO anymore. I was watching Slumdog Millionaire one night and they rescored the "Paper Planes" montage with a version that didn't have the gunshots in it. That was weird as hell. Definite Jump The Shark.

But the difference between Hill Street Blues vs. The Office is that the former is a good show. The latter SUCKS.

HBO is SO not HBO anymore. I was watching Slumdog Millionaire one night and they rescored the "Paper Planes" montage with a version that didn't have the gunshots in it. That was weird as hell. Definite Jump The Shark.

I heard about that. Is that the version that also replaces "seed" with "weed"? Or am I thinking of something else? HBO gets so much praise for what they used to do more than what they do now. I can't imagine a show like Oz ever airing on HBO today.

I don't watch The Office very often, as I think a lot of NBC sitcoms over the past 10-15 years have been too smug (ever since Seinfeld -- this worked for Seinfeld, but that was a unique show). I think NBC has it in them to produce good quality drama, but they don't want to make the effort. They coasted for so long and no one has ever come along to give them a good kick. They still think they can have the next big hit, instead of building something up.

Hopefully this means NBC will shape up. Or am I dreaming?

I think eventually Zucker will be out, or moved to another division, away from NBC Entertainment.

Unfortunately, it doesn't look like that's going to happen. Though, contracts mean very little these days anyway.

http://www.hollywoodreporter.com/hr/content_display/news/e3i5d459dabd48db3c7d2944d98c835d8db

Jeff Zucker signs new contract

Will stay on as NBC Uni president-CEO for three more years

By Nellie Andreeva and Georg Szalai

The company not only closed its long-awaited $37.5 billion merger agreement with Comcast to create an enlarged NBC Universal but also quietly signed a new three-year contract with NBC Universal president and CEO Jeff Zucker to keep him at the company through 2013.

Last week, Comcast and GE said that Zucker will be CEO of the new joint venture, which is 51% owned by Comcast and 49% by GE, reporting to Comcast COO Steve Burke.

Because the Comcast deal is expected to take up to 18 months to clear regulatory hurdles, Zucker's new pact would allow him to run the new NBC Uni for at least another year and a half.

A long-term contract in Hollywood is rarely an employment guarantee (NBC Entertainment president Kevin Reilly famously was ousted three months after signing a new three-year deal at the network), but securing Zucker, who has run NBC Uni since 2007, could provide stability during the transition period and first key months of getting the combined company off the ground.

The company not only closed its long-awaited $37.5 billion merger agreement with Comcast to create an enlarged NBC Universal but also quietly signed a new three-year contract with NBC Universal president and CEO Jeff Zucker to keep him at the company through 2013.

Last week, Comcast and GE said that Zucker will be CEO of the new joint venture, which is 51% owned by Comcast and 49% by GE, reporting to Comcast COO Steve Burke.

Because the Comcast deal is expected to take up to 18 months to clear regulatory hurdles, Zucker's new pact would allow him to run the new NBC Uni for at least another year and a half.

A long-term contract in Hollywood is rarely an employment guarantee (NBC Entertainment president Kevin Reilly famously was ousted three months after signing a new three-year deal at the network), but securing Zucker, who has run NBC Uni since 2007, could provide stability during the transition period and first key months of getting the combined company off the ground.

Edited December 12, 200916 yr by Y&RWorldTurner

I heard about that. Is that the version that also replaces "seed" with "weed"? Or am I thinking of something else? HBO gets so much praise for what they used to do more than what they do now. I can't imagine a show like Oz ever airing on HBO today.

I'm not entirely sure if there are any line changes, but it wouldn't surprise me at all, given every single network program that had the artist on decided to play the version sans the gunshots or re-edit her live performance. Without her permission.

HBO is and always was supposed to be the place people went for counter-culture. Now HBO is basically like any other network. Same for Showtime.

I don't watch The Office very often, as I think a lot of NBC sitcoms over the past 10-15 years have been too smug (ever since Seinfeld -- this worked for Seinfeld, but that was a unique show). I think NBC has it in them to produce good quality drama, but they don't want to make the effort. They coasted for so long and no one has ever come along to give them a good kick. They still think they can have the next big hit, instead of building something up.

NBC has been coasting off fumes since Seinfeld's demise. They didn't even bother with proper programming development and decided that Friends, Fraiser, and Will and Grace would carry them into next century. Well, those three shows are gone and where does that leave them? With a bunch of unwatched, unfunny niche comedies that are supposed to relate to a highbrow audience and sense of thinking, hoping that middle America would follow suit.

I can't believe a TV show like The Office anchors NBC's Comedy Lineup. It's no wonder why the network is in the shitter.

I can't believe a TV show like The Office anchors NBC's Comedy Lineup. It's no wonder why the network is in the shitter.

Well The Office does beat CSI in demos and CSI usually has almost double the total viewers. Also the Office almost commands the same ad rate as CSI - $191,236 to $198,647. So yeah, The Office is one of NBC's most successful shows and I'm glad they stuck by it during the 1st season when it had very low ratings.

Which demos, Toups? 18-49 Female, the one that really matters? or 18-49 Men, 18-34 Female, 12-17 Female/Male? I can eat crow, I have before and I have no problems doing so now. But I need a valid reason and evidence to do so.

And as far as the whole CSI thing, their ratings have tumbled since Grey's Anatomy arrived onto the scene AND since the departures of longtime actors. So what if their demos have slipped? CSI is still a show that has a broader appeal than The Office and the households reflect that. And I notice that Grey's and Private Practice are strangely absent from your list of "Oh, the Office Whooped Their Ass." I mean, if you compare The Office to the rest of network television on every level, the show's ratings still suck.

And as far as the "command the same ad-rate" speech again, give me more information? I don't know a whole lot about advertising, but is that because of the show's ratings or is it because of the audience The Office typically attracts or the type of audience NBC wants to attract to their network(what they deem high brow, big city living, over 100K a year earning Americans with a ton of disposable income and an open-mind)? What kind of products are advertised on The Office versus the ones advertised on CSI?

As an example: I'm assuming the Jaguar company will think their product will get more exposure and more purchase by those who watch The Office(a show that appeals to a niche market, a more high-brow sense in theirs and NBC's eyes) versus those who watch a show like, say, CSI.

Edited December 12, 200916 yr by bellcurve