Initiator | Comcast |
---|---|
Target | NBC Universal from GE |
Type |
|
Cost | US$13.75 billion [1] |
Initiated | December 3, 2009 |
Completed |
|
Resulting entity | NBCUniversal |
On December 3, 2009, telecommunications company Comcast announced its intent to acquire mass media company NBC Universal from General Electric (GE). The acquisition was subject to scrutiny from activists and government officials; their concerns primarily surrounded the potential effects of the vertical integration that the acquisition could create, as Comcast is also heavily involved in cable television and internet services in many media markets. [2] The deal went through on January 28, 2011, resulting in Comcast owning 51% of the company until March 19, 2013, when GE divested its stake to give Comcast sole ownership. Through this acquisition, Comcast gained ownership of the National Broadcasting Company (NBC), the film studio Universal Pictures, cable channels such as Syfy, CNBC and MSNBC, and Universal Parks & Resorts, among other assets owned by NBC Universal. It has also integrated its own cable channels – including E! and Golf Channel – into NBC Universal. As a result of the acquisition, NBC Universal slightly changed its name to "NBCUniversal", rendered in camel case, to indicate the integration between NBC and Universal Studios. [3]
1912 | Universal Pictures is founded |
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1926 | NBC is founded |
1928 | Walter Lantz Productions is established |
1943 | MCA Inc. establishes Revue Studios (later Universal Television) |
1953 | NBC begins first compatible color broadcasts, preceding other networks by nine years |
1956 | NBC's first peacock logo debuts |
1963 | American Cable Systems is founded |
1964 | Universal Studios Hollywood opens |
1967 | NBC broadcasts the first Super Bowl |
1968 | American Cable Systems rebrands to Comcast |
1972 | Comcast began trading on the New York Stock Exchange (NYSE) |
1975 | Universal releases Jaws Filmworks is founded |
1976 | Filmworks becomes Casablanca Record & Filmworks |
1980 | PolyGram renames Casablanca Record & Filmworks to PolyGram Pictures MCA Videocassette‚ Inc. (later Universal Pictures Home Entertainment) is established |
1982 | Universal releases E.T. the Extra-Terrestrial |
1983 | PolyGram Pictures closes |
1984 | Walter Lantz Productions' assets are sold to Universal Telemundo is founded |
1985 | Universal releases Back to the Future |
1986 | General Electric buys RCA for $6.4 billion, including NBC and a stake in A&E |
1987 | PolyGram Movies is founded |
1989 | NBC relaunches Tempo Television as CNBC |
1990 | Universal Studios Florida opens Law & Order premieres on NBC PolyGram Movies is renamed PolyGram Filmed Entertainment Sky Television and British Satellite Broadcasting merge to form British Sky Broadcasting Universal Cartoon Studios (later Universal Animation Studios) is established |
1993 | Universal releases Jurassic Park |
1994-1997 | DreamWorks Animation is founded Seagram acquires Universal through it's acquisition of MCA NBC and Microsoft replace America's Talking with MSNBC Barry Diller purchases Universal's domestic television assets |
1998 | Seagram acquires PolyGram Filmed Entertainment Universal Television is renamed Studios USA Television |
1999 | PolyGram Filmed Entertainment is folded into Universal Pictures Universal Studios Florida expands to become Universal Orlando Resort Law & Order: Special Victims Unit premieres on NBC |
2000 | Seagram is sold to Vivendi and merged with StudioCanal to become Vivendi Universal Entertainment |
2001 | Grand opening of Universal Studios Japan Universal releases The Fast and the Furious Vivendi purchases Studios USA |
2002 | NBC acquires Telemundo and Bravo Studios USA assets are folded into Universal Focus Features is formed Comcast acquires AT&T Broadband for $44.5 billion |
2003 | Universal becomes the first studio with five summer releases breaking the $100 million mark |
2004 | GE and Vivendi merge NBC and Universal into NBCUniversal |
2005 | The Office premieres on NBC Comcast sets up a joint-venture with PBS, Sesame Workshop & HIT Entertainment to form PBS Kids Sprout Comcast & Time Warner Cable jointly acquire Adelphia Cable assets for $17.6 billion |
2006 | USA Network begins 13-year streak as #1 cable network in total viewers |
2007 | Illumination is founded |
2010 | Universal releases Illumination's first film Despicable Me |
2011 | Vivendi divested in NBCU; Comcast buys 51% of NBCU from GE, turning it into a limited liability company NBCUniversal Archives is founded |
2012 | Universal celebrates its 100th anniversary NBCUniversal divests its A&E Networks minority stake |
2013 | Comcast buys GE's remaining 49% of NBCU Comcast/NBCU assumes full ownership of Sprout |
2014 | Comcast attempts to acquire Time Warner Cable for $45.2 billion NBCUniversal reaches a new long-term deal with WWE |
2016 | NBCU acquires DreamWorks Animation |
2017 | Sprout relaunches as Universal Kids |
2018 | Comcast acquires Sky after a heated bidding war with 21st Century Fox |
2019 | NBCU acquires Cineo Lighting |
2020 | NBCU launches Peacock DreamWorks’s Trolls World Tour is releasing on Video on Demand |
2021 | Grand opening of Universal Beijing Resort |
2023 | The Super Mario Bros. Movie becomes Illumination's highest-grossing film |
Comcast was, at the time, the largest cable television provider in the United States. It also owned a number of major cable networks, including E!, Golf Channel, and Versus. In 2004, Comcast attempted a hostile takeover of The Walt Disney Company for $41 billion, which would have made Comcast the world's largest media conglomerate, if approved. The deal fell through, however; Comcast's motivation for the deal was centered around gaining control of ESPN, which a Comcast executive described as "the most important and valuable asset" in Disney's portfolio. The same year, General Electric (GE) acquired an 80% stake in Universal Studios from Vivendi, merging it into NBC to form NBC Universal. By 2009, NBC Universal's financial performance had struggled due in part to the poor performance of recent Universal Studios' productions, and NBC ranked fourth at the time among the major broadcast television networks in the United States. By contrast, some of NBC Universal's cable networks (such as MSNBC, Syfy, and USA Network) were reporting steady gains in viewership. After the failed Disney deal, Comcast focused on its existing networks (along with its Comcast SportsNet regional sports networks), and acquired a stake in the film studio Metro-Goldwyn-Mayer (MGM). [4] [5]
Negotiations between Comcast and NBC Universal for a potential acquisition began as early as March 2009; News Corporation and Time Warner were also reportedly interested in purchasing NBC Universal. By September 2009, Comcast had negotiated a purchase of a stake in NBC Universal from GE, but the overall deal was held up by negotiations with Vivendi for the sale of its 20% stake to GE. [4] On December 3, 2009, Comcast and NBC Universal confirmed a $6.5 billion deal to merge the two companies, pending approval from the United States Department of Justice Antitrust Division; the deal would be structured as sale of Vivendi's stake in the company to GE for $5.8 billion, followed by Comcast acquiring a 51% controlling stake of NBC Universal, and contributing its existing media properties to the company, themselves valued at $7.25 billion. As a result, NBC Universal would become a joint venture between Comcast and GE, with Comcast holding a 51% majority stake. As a whole, the deal valued NBC Universal at $30 billion. The deal included an option for General Electric to sell further stakes in the company to Comcast over seven years, or for Comcast to buy stakes at "specified times". Jeff Zucker was to remain CEO of NBC Universal after the acquisition, and remain headquartered in New York, but would report to Comcast. [1]
Comcast CEO Brian L. Roberts described the deal as a "perfect fit" for the company, as Comcast would be able to bolster its role as a creator and distributor of content, with a particular emphasis on "[the] multiplatform ‘anytime, anywhere’ media that American consumers are demanding"; increasing access to NBC-owned content through various platforms. The deal would also add Comcast's cable channels to NBCU's existing suite of cable networks, contributing to 82% of the merged company's total revenue. Despite the focus on cable, Comcast promised to remain committed to over-the-air broadcasting and promised an increased amount of local news, children's programming, and Spanish language programming across various platforms, including over-the-air. [6] GE's CEO Jeffrey R. Immelt justified the deal, citing a desire to move purely back into the industrial sector, and was also motivated by the Great Recession. [1]
The deal was subject to the approval of the Federal Communications Commission (FCC); due to the magnitude of the agreement, it was placed under heavy scrutiny by the commission, which held hearings on the deal and its effects on the public's access to media. [1]
The acquisition was opposed by several media activists, particularly those who were against vertical integration. Free Press argued that Comcast would use the deal to stifle competition in online video by restricting where NBC-owned content can be offered, and charging higher rates to television providers for accessing NBC-owned networks, having to pass these charges on to consumers. [6] [7] There were concerns from the owners of NBC's affiliates, who urged the FCC to require that Comcast maintain NBC programming on over-the-air television, and not move it exclusively to cable. Several competing internet service and television providers urged the FCC to place conditions on Comcast if the deal were to be approved, including requiring that Comcast adhere to the principles of net neutrality, offer wholesale access to its broadband services, and place limits on how Comcast can leverage its NBC-owned stations in retransmission consent negotiations to inhibit competition. AOL proposed that the FCC enforce its program access rules for Comcast's online video content as well, requiring the provider to offer it to competitors at a fair rate. By June 22, 2010, over 32,000 comments about the deal had been sent to the FCC. [8]
On January 18, 2011, the FCC and the United States Department of Justice (DOJ) approved the acquisition. Four months later, Meredith Attwell Baker, the FCC commissioner who approved the deal, was hired as a lobbyist by Comcast. [9] Upon the completion of the acquisition, which took place on January 28, NBC Universal was slightly renamed to "NBCUniversal", with the change intended to reflect "unity" between NBC and Universal Studios. [3] Comcast and GE formed the joint venture holding company NBCUniversal, LLC on the same day. [10] NBC Universal, Inc. became a wholly-owned subsidiary of the holding company and was renamed NBCUniversal Media, LLC on January 29. [11]
Comcast agreed to offer an internet service plan for qualifying low-income families for at least three years as part of the acquisition. The plan, "Internet Essentials", initially offered a 1.5-megabit connection for $9.95 per month (increased to 5 megabits in 2013) [12] with no activation or equipment fees, as well as an opportunity to purchase a discounted netbook and receive free "internet training". [13] Of an estimated 2.60 million households eligible for the program, about 0.22 million households participated in the program as of June 2013. [14] [15] [16] Comcast stated that the program would accept new customers for the duration of the mandate. [13] In March 2014, as he met with FCC concerning a proposal to acquire Time Warner Cable, Comcast vice president David Cohen told reporters that the Internet Essentials program would be extended indefinitely. [17]
Comcast intended to buy out the rest of GE's stake in NBCUniversal over the following seven years. Ownership remained split at 51%–49% for two years, and later, on February 12, 2013, Comcast announced its intention to complete the purchase all at once and assume 100% ownership of the company by the end of March. [18] [19] The deal was officially completed on March 19. [20]
The merger expanded Comcast's scale significantly; Comcast's position as a cable television provider produced vertical integration with its ownership of NBC Universal's broadcast television and cable networks, while Comcast's existing cable networks (which included E!, Golf Channel, and Versus) were horizontally integrated with the television properties of NBC Universal. Mark Leccese of The Boston Globe noted that the combined company consisted of "10 TV and movie production studios (including Universal Pictures), 20 cable channels, 11 regional broadcast TV stations, 15 Telemundo stations, nine regional sports cable networks, one regional news cable station (New England Cable News), a whole bunch of websites, two pro sports teams in Philadelphia and two arenas, a food service vendor, a ticket agency, and four theme parks. And some other stuff." [21]
This section is written like a personal reflection, personal essay, or argumentative essay that states a Wikipedia editor's personal feelings or presents an original argument about a topic.(April 2014) |
The video marketplace has changed structurally with or without the Comcast-NBCUniversal acquisition. More and more videos, programs, and advertisements are displayed on the Internet, not the traditional media channel, television. As a result, the video business model has gradually changed as time goes by. Comcast has reached such a significant scale that it now owns many media and entertainment properties. However, facing the uncertainty of the video marketplace, many people proposed their concerns:
One of the claims is "Comcast would be able to use its vertically integrated position to deny rival distributors access to programming or to raise the cost of that programming". Comcast-NBC will face two rival distributors – the satellite and telephone company and the new entrant. Of course, both of them worry about the domination that Comcast-NBCUniversal may be capable of establishing and the entry barrier. The big challenge for the satellite and telephone company is to find a new business model to convince the programmers that their model will benefit them more than Comcast-NBCUniversal. However, Comcast-NBCUniversal also keeps improving its business model, which is unhappy to the new entrant.
The other claim is that "Comcast will use the merger to change NBC into a cable network, at the expense of local programming". Some observers predict that Comcast may convert NBC to a cable network. They think that Comcast must have to make some changes because NBC broadcast station traditionally has only one revenue path, the advertising; [22]
The three major topics are media ownership, competition, diversity, and localism. Once two or more media companies amalgamated, such as in the case of the merger of News Corp/DirecTV and Sirius XM, many critics suggested that a merged company with too much power will harm the competition, diversity of the media marketplace and even the democracy of this country. Some of them directly called it "merger to monopoly". FCC Commissioner Copps once said, "It will create a single company with enormous influence over politics, art, and culture across the nation and especially in the New York metropolitan area." Localism may also be affected by this merger. The new entity that acts as a gatekeeper could limit the local or independent voices to get to the slots on the media distribution system. Adam Thierer has conveyed this concern, "The new entity will have the incentive to prioritize NBC shows over other local and independent voices and programs, making it even harder to find alternatives on the cable dial." [23]
One of the claims is, "A combined Comcast-NBC Universal might have the unique ability to craft new business models that benefit consumers." With new digital technologies to distribute videos, advertising revenues have yet to be generated in the new market. Therefore, these enterprise operators must find a new business model to make the revenues financially available. Facing the uncertain environment, Comcast Senior Vice President for Corporate Development, Robert Pick, still shows his determination. He says, "the combination would ameliorate the negotiations friction that had made it difficult for Comcast, primarily a distribution and communications company, to convince content owners and programmers to work with us to create and deliver more content to consumers in a greater variety of ways." [24]
Many observers, such as journalist Adam Thierer, predict that the price of distributing videos were going to fall dramatically in the near future because three distribution products of Comcast (broadcasting, television, and internet) are all merging into the network. Wall Street Journal business columnist Holman Jenkins said that "customers want the product for free. Comcast's lifeblood, the $100-a-month cable bill and the $50-a-month broadband bill, increasingly look like duplicative expenses. And so on." In order to recover the lost revenue from content, Comcast-NBCUniversal may enhance their business on service of advertising, subscription etc. [25]
The first major on-air effects of the deal occurred in February 2011, when Comcast began to align its sports properties with the NBC Sports division; the Comcast Sports Group was renamed NBC Sports Group, with Mark Lazarus, formerly the head of Turner Entertainment Group, heading its cable networks. [26] NBC Sports talent could now appear on Comcast networks such as Golf Channel; NBC's golf coverage was re-branded as Golf Channel on NBC beginning at the 2011 WGC-Accenture Match Play Championship. [27] On August 1, 2011, Comcast announced that its Versus network would be renamed NBC Sports Network on January 2, 2012, to directly align it with NBC Sports. [28]
The acquisition was announced during the fourth season of the NBC sitcom 30 Rock , which depicts a fictitious version of the network. The acquisition of NBC by Kabletown, a large Philadelphia-based cable company, and its consequences became a recurring storyline. The January 27, 2011 episode "Operation Righteous Cowboy Lightning", which aired the day Comcast's Steve Burke met his new NBC employees, opens with a scene depicting a Kabletown sign being installed on 30 Rockefeller Center to replace the existing neon GE sign. [29] [30] In 2014, Comcast received approval by the city of New York to perform a similar modification to the actual 30 Rock, replacing the GE lettering with signs depicting its corporate logo and the NBC peacock. [31]
USA Network is an American basic cable television channel owned by the NBCUniversal Media Group division of Comcast's NBCUniversal. It was originally launched in 1977 as Madison Square Garden Sports Network, one of the first national sports cable television channels.
Universal Studios, Inc. is an American media and entertainment conglomerate owned by NBCUniversal, a division of Comcast.
Comcast Corporation, formerly known as Comcast Holdings, is an American multinational telecommunications and media conglomerate incorporated and headquartered in Philadelphia.
E! Entertainment Television is an American basic cable television network. It is owned by the NBCUniversal Media Group division of Comcast's NBCUniversal. The channel focuses primarily on pop culture, celebrity based reality shows and movies.
NBCUniversal Media, LLC is an American multinational mass media and entertainment conglomerate that is a subsidiary of Comcast and is headquartered at 30 Rockefeller Plaza in Midtown Manhattan in New York City.
NBCUniversal Media Group is the television and streaming arm of NBCUniversal, and the direct descendant and successor of the former division NBCUniversal Television Group, which existed from 2004 to 2019.
NBC Sports Regional Networks is the collective name for a group of regional sports networks in the United States that are primarily owned and operated by the NBCUniversal division of the cable television company Comcast. The networks were originally established as Comcast SportsNet (CSN), a unit of Comcast's cable television business, beginning with a network in Philadelphia which launched in 1997. Their operations were aligned with the national NBC Sports division following the 2011 acquisition of NBCUniversal by Comcast. NBC Sports Regional Networks' business and master control operations are based in Englewood Cliffs, NJ.
International Media Distribution (IMD) (formerly International Networks), a division of NBCUniversal, is a leading provider of in-language networks which facilitates the distribution of Asian, European, Middle Eastern and Hispanic channels and Video On Demand services across all platforms including, cable, satellite and OTT.
New England Cable News (NECN) is a regional 24-hour cable news television network owned and operated by NBCUniversal serving the New England region of the United States. It focuses on regional news, though in some low priority timeslots, paid programming and programming from WNBC such as Talk Stoop and Open House are seen.
NBC Sports Philadelphia is an American regional sports network owned by the NBC Sports Group unit of NBCUniversal, which in turn is owned by locally based cable television provider Comcast, and the Philadelphia Phillies. It is the flagship owned-and-operated outlet of NBC Sports Regional Networks. The channel broadcasts regional coverage of professional sports teams in the Philadelphia metropolitan area, as well as college sports events and original sports-related news, discussion and entertainment programming.
NBC Sports Bay Area is an American regional sports network owned as a joint venture between NBCUniversal and the San Francisco Giants, and operates as an affiliate of NBC Sports Regional Networks. Headquartered in San Francisco, the channel broadcasts regional coverage of professional sports events throughout the San Francisco Bay Area. NBCS Bay Area's sister channel is NBC Sports California. The president of the network is Ted Griggs.
Universal Sports was an American sports-oriented digital cable and satellite television network. It was owned as a joint venture between InterMedia Partners and NBCUniversal.
Monumental Sports Network, formerly NBC Sports Washington, is an American regional sports network owned by Ted Leonsis through Monumental Sports & Entertainment. Headquartered in Washington, D.C., the channel broadcasts regional coverage of sports events throughout the Mid-Atlantic, with a focus on professional sports teams based in Baltimore and Washington, D.C., as well as sports news and entertainment programming.
The Media Access Project was a non-profit group that promoted the public's interest before Congress and the US court system. MAP grew out of a 1960s lawsuit against the United Church of Christ and was eventually formed in 1972 in order to advance the rights of the public wanting to participate in the democratic process. Some of their first cases involved two TV stations in Mississippi not catering to the African American Community, resulting in the stations almost being shut down. From that era and cases came the thought "that members of the viewing and listening public have the legal right, derived from the First Amendment, to participate in FCC proceedings." Their most common way of fighting cases was through lobbying. The group suspended operations on May 1, 2012.
NBC Sports Group is a division of NBCUniversal Media Group that is responsible for NBC Sports' media properties, encompassing the NBC television network's sports division as well as day-to-day operation of the company's sports-oriented cable networks and other properties such as NBC Sports Radio.
NBC Owned Television Stations is the division of NBCUniversal Owned TV Stations (NBCUniversal), a subsidiary of Comcast that oversees the NBC owned-and-operated television stations, Cozi TV network, LXTV and Skycastle Entertainment, its in-house marketing and promotion company. NBCUniversal's Telemundo owned-and-operated stations are held in the separate Telemundo Station Group.
On February 13, 2014, Comcast Corporation announced its intent to acquire Time Warner Cable. The deal was proposed to take the form of a stock swap, estimated at the time of announcement to be worth about $45.2 billion. The two companies argued that the merger would increase their overall scale, allowing the company to become more competitive, improve customer service quality, and quicken innovation. The companies also argued that the deal would increase competition in the United States' cable television and internet markets, as they planned to divest subscribers to Charter Communications to regulate the market share of their combined operation.
Universal Kids is an American children's television channel owned by the NBCUniversal Media Group division of NBCUniversal, which is a wholly owned subsidiary of Comcast.
Telemundo Station Group is the division of NBCUniversal Owned TV Stations (NBCUniversal), a subsidiary of Comcast that oversees their Telemundo owned-and-operated television stations and the TeleXitos network. The NBC owned-and-operated stations are held in the separate NBC Owned Television Stations division.