'Enhance Value': Comcast/NBC Merger Ready To Pop
NBC Universal's employees are on target to fall under Comcast's aegis by Jan. 1, according to Comcast's top executive. CEO Brian Roberts said Wednesday the transaction with NBCU parent General Electric is "on track" to receive regulatory clearance by year-end, although he did hedge with a "we hope."
The proposed joint venture has received endorsements by multiple entities in FCC filings, from agency Naked Communications to the National Hockey League. Naked, of course, has a financial interest in the deal being cleared, since it serves as a media agency for NBCU.
While it does not cite that in its filing, the NHL does. The league has contracts with NBCU and Comcast, where games are on NBC and cable network Versus, and greater collaboration between the two could benefit it.
Some interests have filed protests, but Comcast had at least 22 lobbying shops working on the matter in the second quarter, and likely has its pulse on which way the FCC and Department of Justice will go with their reviews.
A sign that Comcast has little compunction about governmental clearance came as Comcast COO Steve Burke said weekly meetings are occurring between the cable operator and NBCU, so a new company can "hit the ground running" post-approval.
"The NBC executives have looked at our cable business and we keep identifying more and more opportunities to do things together that can enhance value," Burke said on a Comcast earnings call, where he joined Roberts.
Burke estimated that when Comcast takes a 51% interest in NBCU, that would add about $10 billion a year in advertising revenues to Comcast. Based on estimates from 2009, that figure would have taken ad dollars from an estimated 7% of Comcast annual revenues to about 23%.
In the recently completed April-June period, Comcast reported a 6% increase in revenue to $9.5 billion. Operating cash flow was hampered by $22 million in expenses related to the NBCU deal.
Profit was down to $884 million from $967 million in the period a year ago.
Comcast said marketing expenses were up 12% as it rolled out its new Xfinity brand, which should be in 80% of the markets it serves by the end of the year.
Recent MediaDailyNews Articles
-
Budweiser Bows New Campaign, Topped With Responsible-Drinking Blimp May 20, 5:26 p.m.
Summer is a time of concerts and festivals and beach-going, all of which carry the attendant ... -
Clear Channel Outdoor Unveils Consumer Networks May 20, 5:23 p.m.
Clear Channel Outdoor is creating a new way for advertisers to buy out-of-home ad inventory with ... -
Digital TV Video Biz Is Booming May 20, 4:10 p.m.
As traditional TV platforms project small gains in their $70 billion business, new digital TV video ... -
Initiative Wins Amazon's Global Media Account May 20, 3:09 p.m.
Interpublic Group’s Initiative has won global media duties for e-Commerce giant Amazon.com after a review.The company’s ... -
Mars Contract Suit Against Y&R Continues May 20, 11:56 a.m.
A New York judge has denied a request by WPP’s Y&R to toss out a breach ... -
Sony Debuts Marketing Campaign For 4K TV Sets May 20, 11:50 a.m.
While U.S. TV programming networks are not close to transitioning to the new 4K TV technology, ... -
Dish TV Expands On-Demand May 20, 11:19 a.m.
Dish Network, which has allowed subscribers to watch live TV on mobile devices for some time, ... -
Former IPG Exec Pahade Named Poptent CEO May 20, 7:30 a.m.
Nick Pahade, the former North American CEO of Interpublic Group’s Initiative, has been appointed CEO of ... -
Traditional Radio Revs Flat, Digital Revs Up 9% May 19, 4:26 p.m.
Radio advertising revenues were flat at $3.5 billion in the first quarter of 2013, unchanged from ... -
Original 'Voice' Judges Return May 17, 5:41 p.m.
The original quartet of coaches for “The Voice” will return for the fifth season this fall. ...
Be the first to comment on "'Enhance Value': Comcast/NBC Merger Ready To Pop"
Leave a Comment