US cable television giant Comcast has struck a deal to buy a majority stake in NBC Universal from General Electric, creating a media superpower that would control not just how TV shows and movies are made, but how they are delivered to the home.
The deal has been discussed for months and brought to light deep divisions within the media business over its future, with some praising Comcast CEO Brian Roberts as a visionary and others calling it the most foolhardy acquisition since AOL bought Time Warner Inc in 2001.
Under the terms of the deal, Comcast, the largest US cable service provider, will contribute $6.5 billion in cash and its own cable TV networks to take a 51% stake in NBC Universal, which owns TV networks, a movie studio, theme parks and local TV stations. GE will keep a 49% stake.
The two sides said that the deal valued NBC Universal businesses at $30 billion. They valued the Comcast businesses that will be part of the deal at $7.25 billion.
GE cleared the way for the deal by getting Vivendi's agreement to sell its 20% stake in NBC Universal for $5.8 billion.
