Comcast, the No. 1 provider of pay TV and broadband services, is on the verge of becoming the most powerful media company in the United States after federal officials agreed on Tuesday to approve its acquisition of NBC Universal.
The Justice Department and Federal Communications Commission gave Comcast the go-ahead once it agreed to conditions designed to promote competition and boost the amount of TV programming for kids, local communities and minorities.
Comcast now is clear to pay General Electric, which owns NBC Universal, $6.5 billion for a 51 percent stake in a joint venture that will include Comcast-owned cable channels valued at $7.25 billion as well as NBC Universal.
The company is a power in broadcast and cable, movies and the Internet. Its assets include NBC, Telemundo, USA, CNBC, Bravo and Universal Studios.
The NBC Universal deal, expected to close on Jan. 28, has been controversial since it was cut in late 2009.
Consumer and open Internet advocates charged that Comcast would use its new power to choke competition in television and online.
Officials said they approved the deal only after Comcast agreed to important terms.
The agreement would protect the ability of satellite- and telephone-company TV providers - and Internet video services such as Netflix and Apple TV - to offer NBC Universal's networks and shows.
by David Lieberman USA Today Jan. 19, 2011 12:00 AM
Comcast gets federal OK to acquire NBC Universal
