Northern, WI 02/14/2013 (usmarketbuzz) – Alongside announcing a strong result for the Q4 and full year 2012, Comcast Corporation (NASDAQ:CMCSA) the largest cable TV distributor in America also announced its plans to buy the whole of 49% stake in NBC Universal which it currently does not own. After a $16.7 billion deal in 2009 the cable company owns 51% of the NBC’s residual interest in NBC Universal; General Electric Company (NYSE:GE) which founded the business owns 49% now.
After the 2009 divestiture,General Electric Company (NYSE:GE) had $13.8 billion in cash, an amount it expended expanded to bolster its energy division.It spent about $11 billion on acquisitions in 2011. This time it will gain a pretax profit of about $1 billion will be used to finance $10 billion share repurchase per annual, said CEO Jeff Immelt in a statement. About $23 billion worth of buyback authorization is available to GE currently.
The deal includes the transfer of properties located in Manhattan and CNBC New Jersey headquarters for $1.4 billion, said Comcast Corporation (NASDAQ:CMCSA) statement released today.
According to the annual and Q4 financial results released by the Comcast Corporation (NASDAQ: CMCSA) todaythe cable distributor lost another 7,000 of video subscribers amid a shrinking cable TV viewer-ship. Consumer base for high-speed Internet customers and voice customers eclipsed analysts’ estimates; both expanded by 341,000 and 168,000 respectively. The companies has not booked any profits since 2007; if it were not for Hurricane Sandy profits could have come its way, said Roberts.
The company also announced a rise of 20% in 2013 dividend; these stand at 78 cents per share now. The cable operator also plans to buy back stock worth $2 billion in the current year. Wardwell and Davis Polk from Morgan Stanley (NYSE:MS) were the company’s advisers in the GE purchase. JPMorgan Chase & Co. (NYSE:JPM) was the financial adviser to the encore while Weil, Gotshal & Manges were the legal advisers of the acquirer. Goldman Sachs Group Inc. (NYSE:GS), Center view Partners and CBRE also provided strategic advice related to the transaction.
The plans to take over the remainder of the NBC Universal business were first disclosed by Comcast Corporation (NASDAQ:CMCSA)’s CFO, Michael Angelakisin September.Over the past year the entertainment network has emerged from its last place in the race and has received prime ratings. At present, its market value is $39.1 billion.
Comcast Corporation (NASDAQ:CMCSA) shares were up by 2.98% to close at $40.13. General Electric Company (NYSE:GE) shares were up by 3.59% to close at $23.39. Goldman Sachs Group Inc. (NYSE:GS) shares were up by 0.27% to close at $154.52. The JPMorgan Chase & Co. (NYSE:JPM) shares down by 0.94% to close at $48.68. Morgan Stanley (NYSE:MS) share prices were unchanged at $23.63.