NBC deal transforms US TV media
8 December 09

Comcast Corp has struck a deal to buy a majority stake in NBC Universal from General Electric Co, creating a media superpower that would control, not just how television shows and movies are made, but how they are delivered to the home. The deal had been discussed for months and brought to light deep divisions over the future of the media business, with some lauding Comcast chief executive officer Brian Roberts as a visionary and others calling it the most foolhardy acquisition since AOL bought Time Warner in 2001. In a world where the internet has disrupted traditional media, Comcast wants NBC Universal so it can deliver programming to audiences however they may want it - whether through TV sets, personal computers or mobile devices.

Not only is Comcast the largest US cable distributor, it also is the leading internet service provider to homes. But critics of the deal, including some of Comcast's own shareholders, suggest there is too little overlap between the businesses to draw out meaningful savings, and that competition regulators are bound to burden it with restrictions. Moreover, big media deals rarely work, they say, pointing to Time Warner Inc's break-up as an example. Once the world's biggest media company, Time Warner has spun off Time Warner Cable Inc and will soon do the same with AOL.