Comcast buys 51% of NBC Universal from GE

[snowywhite89]

http://www.nytimes.com/2009/12/04/business/media/04nbc.html

 

[bicker]

It's about time.

 

[Pumbaa7287]

So fo someone who is not as educated on such matters, what does this mean? Just a possible name change? Or will the effects on the theme parks be more far-reaching?

 

[bicker]

The impact on the theme parks is almost surely going to be negligible within the foreseeable future. This is really much more so about impact on the studios and networks (over-the-air broadcast and cable/satellite).

 

[Bradsdadg]

Not sure what Comcast has planned. I'm sure if there are movie rights involved they will add it to their cable rentals. Wasn't that the big plan they had when they tried to buy Disney, all the pay per view movie possibilities.

 

[bicker]

There is loads of speculation regarding what Comcast is going to do.

I think one thing that is often overlooked is that this acquisition is a goal within itself. Just having ownership over this larger, mostly successful train, is something Roberts has wanted, without any specific desire to "use" the acquired properties in specific ways.

I think there is also a lot of focus on, specifically, the NBC network, itself. It is, however, the source least likely to offer substantial new revenue streams capitalizing on affinities. Rather, I think it is best to look at this acquisition as Comcast acquiring a movie studio and cable television networks (and oh by the way an over-the-air national network too, but only as an afterthought).

I don't see the point you're making with regard to movie rights. NBC Universal was a studio and the networks, so the scenario hasn't changed.

 

[bicker]

Just expanding on that a bit... reading your comment a little closer...

The idea of movies going from studios direct to cable PPV (i.e., bypassing traditional distribution channels) never really took off. Distribution pre-pay-cable would require selectable output controls, which has been vigorously opposed by enthusiasts and has yet to be deployed in any significant way. Generally, movies become available via cable through established distribution channels (i.e., USA network, for example, in the case of Comcast). Even if there were plans at some point to cut out the distributor, those plans are effectively scuttled by the regulatory limitations placed on Comcast by the FCC, in order to secure approval for the acquisition. At the very least, Comcast will be barred from affording their own cable systems any deals for movie rights for PPV that they are not offering to their competitors.

 

[Metro West]

The impact on the theme parks is almost surely going to be negligible within the foreseeable future. This is really much more so about impact on the studios and networks (over-the-air broadcast and cable/satellite).

I agree...I don't see any changes in the forseeable future for the theme parks especially with the money WWoHP is bringing in. This might even be a good thing when the Marvel deal comes up for renewal so who knows what will happen.

 

[Rip]

Since NBC/Universal only owns 50% of UO in the first place, I don't see it having any negative impact (if it has any impact at all).

 

[keishashadow]

hmm, i thought they owned 51%?

This has been brewing for some time pending this approval

Hopefully, comcast has deeper pockets than NBC & will be good partner for the park, infusing it with the cash it needs to operate at high level until they find a buyer who really wants to run it.

They wanted the NBC programming, likely plan to try & charge the satellite providers huger fees to carry their broadcast channels. FYI, DirecTv hasn't been negotiating well lately (G4 g-o-n-efrom line up). IMO comcast could cripple the satellite industry if everything lined up for them.

they tried to buy disney few years ago, who knows...may have their eye on another acquisition...pretty sure busch still has SeaWorld up for sale.

 

[bicker]

Comcast will own 51% of NBC Universal, with guaranteed options to buy more. That's probably what keishashadow is thinking about, rather than the split ownership of Universal Orlando, between NBC Universal and The Blackstone Group.

Comcast does have deeper pockets, but that doesn't mean that they're going to direct their resources toward the parks. The parks were probably a small afterthought with regard to Comcast's acquisition of NBC Universal.

Comcast didn't necessarily want NBC programming. Rather, they wanted NBC Universal's movie and television production studio and their cable channels. The rest came along with it.

 

[keishashadow]

bicker, yep i thought they were the majority shareholder in the park.

IMO it quite the coincidence that 1st comcast went after Disney, then Universal (even if NBC was their 'target') all the while protesting they want programming vs theme park ownership.

 

[bicker]

No, not really. There were only five possible targets: Disney (ABC), Universal (NBC), National Amusements (CBS; Showtime; half of CW), News Corp. (Fox), and Time Warner (Turner; HBO; half of CW).

They tried Disney. They got Universal. National Amusements is closely-held and CBS is the only thing that makes life worth living for Redstone, I suspect. News Corp. would have been practically impossible; Murdoch would never let it go. Time Warner probably was their third choice.

 

[Rip]

hmm, i thought they owned 51%?

This has been brewing for some time pending this approval

Hopefully, comcast has deeper pockets than NBC & will be good partner for the park, infusing it with the cash it needs to operate at high level until they find a buyer who really wants to run it.

They wanted the NBC programming, likely plan to try & charge the satellite providers huger fees to carry their broadcast channels. FYI, DirecTv hasn't been negotiating well lately (G4 g-o-n-efrom line up). IMO comcast could cripple the satellite industry if everything lined up for them.

they tried to buy disney few years ago, who knows...may have their eye on another acquisition...pretty sure busch still has SeaWorld up for sale.

Actually, Blackstone bought Seaworld and Busch Gardens last year, and they currently own 50% of UO as well. If anything, I wouldn't be surprised to see them make a move to buy controlling interest in UO in the future. Not that I think they will, but I think that scenario is more likely than Comcast buying them out.

 

[keishashadow]

Actually, Blackstone bought Seaworld and Busch Gardens last year, and they currently own 50% of UO as well. If anything, I wouldn't be surprised to see them make a move to buy controlling interest in UO in the future. Not that I think they will, but I think that scenario is more likely than Comcast buying them out.

a couple years ago the mr was considering buying Universal stock, been following the twists since then. Re: blackstone ownership, seem to recall the sale was announced late '09. Blackstone imo is committed to needed cash infusion based upon new cheetah coaster @ BG & HP @ U. Let's hope comcast follows suit to the improvements to successfully compete against disney.

rumours r bouncing about that blackstone is trying to unload seaworld

 

[WDWisTheBest]

Comcast will own 51% of NBC Universal, with guaranteed options to buy more. That's probably what keishashadow is thinking about, rather than the split ownership of Universal Orlando, between NBC Universal and The Blackstone Group.
Comcast didn't necessarily want NBC programming. Rather, they wanted NBC Universal's movie and television production studio and their cable channels. The rest came along with it.

It has been speculated that due to Comcast not wanting NBC programming, some unexpected changes to programming were made. For example, Keith Olbermann is no longer a host on MSNBC nighttime programming.

David Shuster, a former MSNBC anchor and fill-in host for Keith Olbermann, says he believes Olbermann worried "his wings would be clipped" under a new Comcast management structure that would have given NBC News more control of his show.

"The new company's restructuring", Shuster said on Reliable Sources today, "will give the overtly objective NBC News more say over MSNBC."

It will be interesting to see what the new ownership of NBC/Universal will bring to programming of NBC and to the theme parks.

 

[bicker]

I suppose anything is possible, but (and this is all I will say about it) it is pretty clear who's in charge at Comcast, and the campaign contributions people like that have made over the last four or five years are public knowledge. Nuf sed.

I think Olbermann was a lightning rod and might have found himself unhappy with future employ at MSNBC despite the change in ownership.

 

[DCTooTall]

From what I remembered reading, Obermann was pretty much protected by Zucker. For whatever reason, Obermann didn't make a lot of friends within NBC News, but with Zucker as the head of NBC/Universal he was protected from the whims of the NBC News management.

Unfortunately, Zucker made himself a HUGE target and liability with his mucking up of the whole Conan/Leno mess last year.... And this past week was his last week at NBC/Universal.


With Zucker Gone...Obermann lost his protection. Now, I have no clue if Obermann decided to leave fearing that without the potential protection of someone higher up the company he would be pressured to change his show.... Or if with Zucker no longer around protecting him, if management at NBC News/MSNBC decided they could finally get around to getting him out of there.

 

[bicker]

The deal closed this weekend.

 

[Tiggr88]

hmm, i thought they owned 51%?

They wanted the NBC programming, likely plan to try & charge the satellite providers huger fees to carry their broadcast channels. FYI, DirecTv hasn't been negotiating well lately (G4 g-o-n-efrom line up). IMO comcast could cripple the satellite industry if everything lined up for them.

IF I can figure out how to link directly to the article, I will, but I here is an excerpt from it that refers to that possibility and the apparent restrictions built in to the approval. I'm not sure how this will actually work, but it does address the issue you raised.

http://finance.yahoo.com/news/Comcast-takes-control-of-NBC-apf-3135161881.html?x=0&sec=topStories&pos=1&asset=&ccode=

Regulators forced Comcast to make the full suite of NBC Universal content available as a single package to online competitors on terms comparable to those reached with more established rivals such as Dish Network Corp. and DirecTV.

NBC Universal is also expected to match new deals for smaller chunks of programming between other media firms and online video providers if it has comparable programming on hand. As an example, NBC Universal might have to make the Bravo channel's "The Real Housewives of New York City" available to Netflix Inc. if Viacom Inc. cuts a similar deal for MTV's "Jersey Shore."