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NBCU deal put under spotlight
Comcast's US$37bn deal to take a majority stake in NBC Universal (NBCU) has come under immediate regulatory scrutiny, with the Federal Communications Commission (FCC) promising to carefully examine the move.
The cable giant yesterday concluded long-running talks with NBCU's parent General Electric to acquire 51% of the company, in a deal that values NBCU at US$30bn and combines it with US$7.25bn worth of Comcast's cable channels.
 The deal is the first major merger of its kind under the Barack Obama administration, which campaigned on taking a less laissez-faire approach to business. Yesterday's deal could see the newly merged behemoth controlling as much as one-fifth of all advertising on US TV screens.
The FCC's review of the deal is expected to take 12 months, and the Department of Justice or the Federal Trade Commission could also examine it, although the FCC will have the final say.
"My long-standing scepticism about the harm imposed by a few controlling so much persists," said Michael Copps, a Democratic FCC commissioner. "They face a very steep climb with me."
House Energy and Commerce Committee chairman Henry Waxman added: "This proposal raises questions regarding diversity, competition, and the future of the production and distribution of video content across broadcasting, cable, online and mobile platforms."
Adam Benzine
4 Dec 2009
© C21 Media 2009
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