The NBC-Comcast Merger

Comcast is buying 51% of NBC from General Electric.  I worked for the GE/NBC in New York and I can say, along with every public observer I have seen write on the subject, that NBC was a difficult cultural fit for GE.  It is not that GE did not try to assimuate NBC and it is not like NBC was not valuable to GE.  In fact, NBC oftn delivered more of GE’s profits that its share.  In a recent quarter, for example, NBC was 11% of GE’s operations yet deliverd 12% of their profits.  Even so, GE’s primary culture is one of manufacturing, not entertainment.  So NBC seemed like a bit of an awkward fit.  so Comcast buying NBC is probably a good thing.  GE obviously thinks so since they are setting up a deal with very favorable terms for Comcast.

The next steps include a review by the FCC.  Perhaps the FCC might even set conditions on he merger.  And with the size of this merger, it is not unlikely that the del will also be reviewed by the Justice Department and maybe even the FTC.


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