NBCU, Comcast Say Merger Creates Jobs

by David Goetzl , February 4, 2010

Jeff Zucker of NBCU

In testimony before a House committee Thursday, top Comcast and NBC Universal executives tried to persuade Representatives that their joint venture will be a job-creation entity.

NBCU CEO Jeff Zucker told committee members the new company would be a "growing source of high-wage jobs," while Comcast chief Brian Roberts promised "no massive layoffs" once the deal is consummated.

At a time when the American people have sent a message to Congress that unemployment stats could impact their votes in November, the message was a clear appeal to a Capitol Hill concern.

In addition, Zucker told members of the House Energy and Commerce Committee that the proposed deal would allow NBCU owner General Electric to use proceeds to expand its workforce.

"With the deal, GE will have billions of dollars to invest in jobs in its core businesses," he said.

GE would own 49% of the proposed venture; CEO Jeff Immelt has said cash thrown off from that stake will offer reinvestment opportunities.

Lawmakers are evaluating the proposed deal through the prism of its effect on consumers. Ed Markey (D-Mass.) former chair of the subcommittee, said: "The issue before us really boils down to the 7 "C's" -- Will this Combination of Communications Collossi Curtail Competition and Cost Consumers? That is the question that must be answered as this process moves forward."

employment, politics, television

3 comments about "NBCU, Comcast Say Merger Creates Jobs".

Check to receive email when comments are posted.

Dave Woodall from fiorano associates, February 4, 2010 at 6:16 p.m.
Yeah, and I believe Zucker when he says he knows how to program a TV network too!
When was the last time you read about a merger being justified in part through its creation of jobs?
Mergers create economy of scale through the elimination of redundancy - in facilities, equipment, and staff - that's basic Econ 201.
I hope Congress asks for concrete examples of how Comcast/NBCU is planning on becoming a "growing source of high-wage jobs" before buying into Jeff "Least Cost Rule" Zucker's obvious pandering.
Reply

Jonathan Mirow from BroadbandVideo, Inc., February 5, 2010 at 12:30 p.m.

Hahaha - this is the funniest thing I've read all week. Let's see, they have two HR departments, two Advertising & Marketing departments, duplicity in multiple positions around the country - but (somehow) this merger will create jobs. The REASON you merge is to claim scales of economy. Hell, they sent Nacchio to prison for this kind of thing - these boys should be more careful in deploying this oft-used upper executive technique (it's known in lesser circles as "lying out your ass"). Seriously now, does ANYBODY who has ever been through a corporate mereger believe this fairy tale?

Ken Nicholas from VideoAmp, February 7, 2010 at 12:47 p.m.

Looks like Congress getting a chance to hobnob with Broadcast royalty, hate to say. Just a tiny bit of diligence would have asked these questions [from their statements made]: "What exactly is your definition of 'no massive layoffs'"?, and, "Does a 'growing source of high-wage job's' actually apply to MORE than just the top 5 guys lording over Comcast?" I bet those answers are already known, but won't be going on the record.