US cable and media group Comcast has bought General Electric’s 49% stake of NBCUniversal for US$16.7bn, taking full control of the venture.
GE will also receive US$1.4bn for real estate used by the media group in New York and New Jersey, taking the…
US cable and media group Comcast has bought General Electric’s 49% stake of NBCUniversal for US$16.7bn, taking full control of the venture.
GE will also receive US$1.4bn for real estate used by the media group in New York and New Jersey, taking the total deal value to US$18.1bn.
In a statement Comcast said the consideration would be made up of US$11.4bn in cash on hand, US$4bn of senior unsecured notes to be issued to GE, US$2bn of borrowings under its bank credit facilities, and US$725m of preferred stock to be issued to GE.
The deal has been approved by the boards of both Comcast and GE, which expect the deal to close before the end of Q1.
Morgan Stanley was financial advisor to Comcast and Davis Polk & Wardwell gave legal advice.
JP Morgan advised GE, and Weil, Gotshal & Manges was the company’s legal advisor. Goldman Sachs, Centerview Partners, and CBRE provided strategic advice related to the transaction.
“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,” said Comcast CEO Brian Roberts.
Comcast acquired 51% of NBCUniversal in 2011 buying a stake from GE in a complicated cash plus asset deal that valued the media unit at roughly 30bn.
Comcast is the largest cable provider in the US, offering TV, internet and fixed-line telephony.
