Comcast-NBC Deal

Comcast and NBC viewers are starting to get anxious as the alleged deal between the two companies could go through any time soon. Comcast, with strong ambitions from their CEO Brian Roberts, is looking to buy control of NBC in what could be a $30 billion acquisition.

This deal would give Comcast 51% of the company, leaving GE's NBC with 49%. GE, who currently owns 80% of NBC, has to get permission from Paris-based Vivendi, who owns the remaining share of NBC. GE and Vivendi would have to work out a separate deal, possibly leaving GE with total control over NBC. Comcast seems to be very enthusiastic about the deal as it would give them 27 additional channels, and a tie into the movie industry. They are currently the number one cable and broadband company, and this deal would give them even more control in the cable, broadband, and movie industry. Brian Roberts sees this deal as a way for them to increase revenue and meet the demands of all cable viewers. Roberts says, "We are creating a new company with an absolute first-class set of cable channels. Cable is becoming a commodity, and there is a very large demand for it. If the government decides to put it in every home in the country, business will boom for all cable companies. Right now, 82% of Comcast's revenue comes from cable channels, and NBC's 5 main channels generate over $200 million in revenue. This is one of the main reasons why Comcast sees this deal as a way of possible success in the future. GE seems very interested in the deal although they would only own 49% percent of the company. It associates them with the leading cable and broadband company in the country, and could not only potentially boost revenue, but improve their reputation. GE has spoken before about selling NBC, and if this deal goes through they would likely sell off the remaining 49% of NBC to Comcast over the following 8 years.

I don't think the deal should go through because it would give Comcast too much power in the cable industry. The acquisition would give Comcast-NBC 20% of all U.S. airing hours and would generate an estimated annual revenue of $42 billion. The other major concerns amongst the public would be the increase in channel prices. Competition is very limited as it is, and other companies would be forced to raise there prices as well. If any other company wanted to provide NBC channels, Comcast would charge higher prices due to the strong demand for them. Cable prices are only going up from here on out, and this would increase them by even more. Right now people don't like paying for channels they don't use. If Comcast buys NBC, people will be getting other Comcast or NBC channels they don't want, and will be forced to pay extra for them. The question of whether or not this would create a monopoly has concerned both viewers and competitors. The FTC is doing all they can to determine if the deal is legitimate, and without their approval the deal will not go through.