Comcast takes control of NBC Universal (AP)
Saturday, January 29, 2011 11:01 AM
LOS ANGELES – The nation's largest telegram TV company, Comcast Corp., took control of NBC Universal after the government bound its activity in the coming eld to protect online recording services much as Netflix and Hulu.
The care winking shortly before midnight EST on Friday.
The takeover gave the cable-hookup consort 51 proportionality control of NBC Universal, which owns the nation's fourth-ranked broadcaster, NBC; the Universal Pictures flick studio and related thought parks; and a bevy of telegram channels including Bravo, E! and USA.
The combination had raised fears that Comcast strength shout its control of NBC Universal to souvenir its most priceless customers: the 23 meg who rely on it for telegram TV assist and the 17 meg who pay for cyberspace connections.
But the Justice Department and Federal Communications Commission imposed conditions that prevent Comcast from keeping to itself NBC Universal's favourite shows much as "The Office" and movies including "Despicable Me" for the incoming individual years.
NBC's "30 Rock" on weekday period spoofed Comcast's close takeover from General Electric Co. As a measure bell sounded, a neon "GE" atop an office building fizzled discover and was replaced by a "K" inside a swoosh resembling Comcast's logo.
"Wow, discover with GE, in with Kabletown," said Tina Fey's character, Liz Lemon. "Seems same digit of us should sing 'The Circle Game' right now."
Conditions imposed on Comcast were serious, though.
Regulators unnatural Comcast to attain the flooded flat of NBC Universal noesis acquirable as a azygos package to online competitors on cost same to those reached with more ingrained rivals much as Dish Network Corp. and DirecTV.
NBC Universal is also expected to match newborn deals for small chunks of planning between another media firms and online recording providers if it has same planning on hand. As an example, NBC Universal strength have to attain the Bravo channel's "The Real Housewives of New royalty City" acquirable to Netflix Inc. if Viacom Inc. cuts a similar care for MTV's "Jersey Shore."
The consort also had to provide up the decision-making noesis related with its 32 proportionality care of Hulu, the online recording assist it co-owns with The Walt Disney Co., News Corp. and Providence Equity Partners. Hulu is digit of the services that makes watch "30 Rock" doable online.
The rules particular the newborn tract for recreation in the bag between tralatitious noesis players much as Comcast, which has forfeited subscribers in the economic downturn, and companies much as Netflix, which added them with its affordable assist and compatibility with a range of devices. Netflix ended the assemblage with 20 meg customers after adding 3.1 meg during the fourth quarter, by far the most during any three-month period since its assist launched in 1999.
In the deal, Comcast paying General Electric meet under $6.2 1000000000 in cash and contributed its pay TV channels much as E! Entertainment Television and The Golf Channel, worth $7.25 billion, to NBC Universal.
GE's wager in NBC Universal fell to 49 proportionality from 80 percent, but GE plans to diminish that to zero by being paying discover from the wager over most heptad years. Earlier this week, GE bought discover the 20 proportionality wager held by France's Vivendi SA for $5.8 1000000000 in order to rank the deal.
As part of Comcast's takeover, NBC Universal changed its joint trademark to NBCUniversal — without the space, the peacock or the sphere silhouette. Officially, the company's name is ease NBC Universal, but the space-less organisation is meant to represent the unity of its two important divisions.
Ahead of a town hall meeting with their newborn joint bosses on Thursday, whatever 25,000 NBC Universal employees apiece conventional a certificate for 25 Comcast shares, worth $22.84 apiece on Friday; a kinsfolk pass to digit of the Universal thought parks; and another materials, including a "Big Idea Book" in which they were to achievement their own.
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