Comcast acquires GE's stake in NBCU for $16.7 bn

MUMBAI: American media and technology company Comcast Corporation will take complete control of NBCUniversal by acquiring General Electric?s (GE) entire 49 per cent common equity stake in the joint venture for approximately $16.7 billion.

NBCUniversal will also purchase from GE the properties used by NBCUniversal at 30 Rockefeller Plaza and CNBC?s headquarters in Englewood Cliffs, NJ for approximately $1.4 billion.

Comcast Corporation owns a controlling 51 per cent interest in NBCUniversal, with GE holding a 49 per cent stake. In 2011, Comcast acquired a 51 per cent majority stake in media conglomerate NBCUniversal from GE.

The acquisition accelerates GE?s divestiture ahead of a redemption period that would have begun in July 2014 and solidifies Comcast?s position as a leading media and technology company. The transaction is subject to customary closing conditions and is expected to close by the end of the first quarter of this year.

"This is an exciting day for Comcast as we have agreed to accelerate the purchase of NBCUniversal. The management team at GE has been a wonderful partner during the past two years and their support has been very valuable. Our decision to acquire GE?s ownership is driven by our sense of optimism for the future prospects of NBCUniversal and our desire to capture future value that we hope to create for our shareholders," said Comcast Corporation Chairman and CEO Brian L. Roberts.

"We believe the terms of the transaction are attractive and have planned for this event by taking a number of financial steps to prepare our balance sheet. We believe we are in a strong and unique position to continue to grow and build value in our combined company."

The transactions will be funded with $11.4 billion of cash on hand, $4 billion of subsidiary senior unsecured notes to be issued to GE, $2 billion of borrowings under Comcast and/or subsidiary bank credit facilities and $725 million of subsidiary preferred stock to be issued to GE.