Yesterday The Wrap went out with an exclusive story that Comcast is making a move to buy NBC Universal! According to the site the deal is already sealed and the cable giant is said to be shelling out $35 billion for NBC Universal. A highly leveraged move since Comcast itself has a $48billion market cap and only about $4 billion in cash.
NBC Universal had $7.5 billion in revenues in the first half of 2009 and made $1.6 billion in profit.
Interestingly Comcast PR didn’t deny the news completely but said that the report is “inaccurate”. The LA Times says it’s possible Comcast may be looking at some sort of a joint venture or a stake in NBC Universal instead of an outright buy.
As of 11:43am eastern Comcast stock is down 7.52%
Not sure if this is good news or bad news considering the state of NBC’s local news. A highly leveraged buy such as this might not leave much room for improving local news and their ever shrinking budgets.