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Comcast to Buy 51% of NBC, GE Goes After 49%
An anonymous reader writes to tell us that Comcast and General Electric announced a joint venture yesterday to control NBC Universal, with Comcast coming out with the controlling interest. Comcast's hopes seem to be on succeeding in a marriage of distribution and content, where Time Warner failed. "The deal was approved by the companies' boards, and is subject to regulatory approval. GE said it expects the deal to go through in the third quarter of 2010. Congress has already said it will hold a hearing to investigate whether Comcast will gain 'undue advantages' from the deal that gives it access to programming."
In other news, comcast announced today that they have a revolutionary way of throtteling high-tv viewers during "primetime" hours. While primetime was not explicitly defined (nor was "high-tv viewer"), they promised that this was in the best interest of their customers in order to ensure that everyone gets their fair share.
Seriously though, it'll be interesting to see what happens here. Ads for new NBC shows over broadband anyone?
Starting immediately, CBS and ABC will now only be available as pay per view for all Comcast customers!
That was pretty hardcore dude. You're soooo nonconformist. Keep raging against the machine while Cheetos dust covers your neckbeard down in your parent's basement.
There's virtually nothing good on television anyway
It's ok dude, I'm sure they're gonna bring back Firefly. It's true cause I signed this one petition online and everything!
Comcast is gunning for vertical integration. In order to optimize the benefits from its vertical integration, it has a very strong incentive to prioritize NBC sites and content over other sites and content.
I'm convinced that Comcast's package will include optimized delivery for NBC sites and content, only available to Comcast users. In and of itself not a bad deal, but there is very little difference to the end-user between optimizing delivery of your own stuff and throttling delivery of other people's stuff - except that one is dirt cheap to do, and the other is expensive. In a few years, I'm expecting Comcast to offer sites like it currently offers channels: with different pay tiers and different performance.
Nice troll sig, by the way. I'll reply with a quote from Sagan: " They laughed at Columbus, they laughed at Fulton, they laughed at the Wright brothers. But they also laughed at Bozo the Clown."
Those who can, do. Those who can't, sue.
Seriously, this was on the front page of every news outlet... almost two days ago. I know that there's a bit of a lag time to get things on Slashdot, but honestly, is it asking that much to post big stories the same day they happen?
Originally NBC was owned by the now defunct RCA. NBC was founded essentially to make content so that RCA could sell more Radios and then Televisions and all the equipment needed to create a radio and tv station. So, not only did RCA own the pipe, they had actually owned the -hardware-. Eventually GE would buy RCA in the early 1980s for the sole purpose of getting NBC. They basically kept NBC, closed RCA, but sold the logo to the French. As an Ex-RCA Employee, I still curse Jack Welch but.... in those days, the merger of RCA and GE which should have been seen as troubling was almost irrelevant as both companies were still selling tubes in the age of the transistor and Sony was really stomping up a storm.
Bottom line is, yeah, it will be a big company, but there's a lot of other media and a lot of other competition out there.
[disclosure: I live in the Philly area and, having lost the World Series to the Yankees, the thought of the NBC HQ from NYC to Philly seems like it would be really sweet. They got the team, but we get the TV].
This is my sig.
GE currently owns a majority stake in NBC Universal (they needed to negotiate with the other owner, Vivendi, before they could proceed with this deal). Under the deal, a new company is being formed, with GE contributing NBC Universal and Comcast contributing some of their content assets and a bunch cash (or cash like assets). Comcast ends up with 51% ownership of the new company, and GE 49%.
Nerd rage is the funniest rage.
This will allow for competition for those people who are stuck with Comcast being the sole provider.
Wonder what effect this will have on plots in 30 Rock. Is Jack going to gun for CEO of Comcast now? That lacks the same punch.
Doesn't NBC partly own Hulu? Isn't Comcast's Cable system in competition with Hulu?