US media and technology corporation Comcast has agreed a $16.7 billion (€12.5 billion) deal to acquire the remaining 49-per-cent stake in media company NBCUniversal and complete a buy-out five years ahead of schedule.
NBCU, through its NBC Sports Group division, has a sports rights portfolio that includes American football’s NFL Sunday Night Football package, NHL ice hockey and the Olympic Games through to the 2020 edition. NBCU also operates the NBC Sports Network and Golf Network pay-television channels.
Comcast’s decision has been driven by its belief that it would end up paying substantially more for conglomerate General Electric’s remaining 49-per-cent stake in NBCU if it had waited until 2018 – the year that was earmarked for a complete buy-out when Comcast acquired a majority stake in NBCU in 2011.
The Associated Press news agency said that complete ownership would allow Comcast to benefit from the rising price of sports rights.
“We thought that we would have to pay more later,” Comcast chief executive Brian Roberts said. “We really have known we wanted to buy 100 per cent from the beginning of the transaction. We wanted to learn the business. We feel that now is an opportune time.”
The transaction is subject to customary conditions and is expected to close by the end of the first quarter of this year. The deal values NBCU at $34 billion, not including $5 billion in debt.