Is Comcast in talks to purchase NBC Universal? Some sources suggest this may indeed be the case. Apparently Comcast is looking to increase the content offering of their already large empire and this would add USA, Syfy (Sci-Fi forever!!!), CNBC, MSNBC and Bravo to their lineup.
Currently NBC Universal is owned by General Electric and there have been rumors that they have wanted to spin NBC off for a few months now. However, Comcast has issued a statement today which casts some serious doubt on this supposed deal. A spokesman stated: ““While we do not normally comment on M&A rumors, the report that Comcast has a deal to purchase NBC Universal is inaccurate”. So, while there may be no deal in place currently, there seems to be a lot of “noise” about this possible acquisition. There are other reports that about 6 or so companies might be interested in purchasing NBC from GE.
From Comcast’s point of view, this deal actually makes a certain amount of sense, assuming they can get a reasonable price for the company. This would give them a clear-cut advantage over competitors like Time-Warner and DirectTV, who are in constant turf battles with Comcast.
The big problem with this deal, or any possible deal with GE is that they have traditionally over-valued their stake in NBC. I’m not confident that Comcast or anyone could get a real good “deal” from GE in the first place, so why take the risk? Wouldn’t it be better to save those pennies and invest in emerging technology, suck as figuring out a business and revenue model for television over the Internet? Am I the only who thinks this is the most obvious thing that content providers or cable companies should be focusing on? Of course, Comcast, Time Warner and NBC all have an interest in protecting their current business model and have little to no interest in innovating in such a way that might actually grow their business and market share.
Comcast to Buy NBC?